<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                                    UNITED STATES
                          SECURITIES AND EXCHANGE COMMISSION

                               Washington, D.C.  20549
 
                            ------------------------

                                      FORM 10-Q


/X/      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
         SECURITIES EXCHANGE ACT OF 1934

         For the Quarterly Period Ended April 30, 1998

/  /     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
         SECURITIES EXCHANGE ACT OF 1934

         For the Transition Period From _________ to _________

                           Commission file number  1-12557
 
                              ------------------------

                                 CASCADE CORPORATION

                (Exact name of registrant as specified in its charter)

                    OREGON                                      93-0136592
      (State or other jurisdiction of                        (I.R.S. Employer
       incorporation or organization)                       Identification No.)

                 2201 N.E. 201ST AVE. FAIRVIEW, OREGON    97024-9718
                (Address of principal executive office)   (Zip Code)

          Registrant's telephone number, including area code:  (503)669-6300
 
                         ------------------------------

    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes /X/  No / /

    The number of shares outstanding of the registrant's common stock as of 
May 30, 1998 was 11,862,206.
 
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------



<PAGE>

ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND 
          RESULTS OF OPERATIONS    

RESULTS OF OPERATIONS

    Consolidated net sales for the three months ended April 30, 1998 totaled
$107,125,000, an increase of 26.4% compared to sales of $84,725,000 recorded in
the first quarter of 1997.  Revenues for the first quarter of 1998 include the
full effect of recent acquisitions.  Net income for the first quarter of 1998
was $6,815,000 ($.51 per share) or 135.0% higher than net income of $2,900,000
($.23 per share) for the corresponding 1997 period. Earnings for the quarter
include $1,628,000 ($.12 per share after tax) from the sale of a parcel of land.
Expressed as a return on sales, net income for the first three-month period of
1998 was 4.8% before the land sale.  The improvement in operating results is
broad based and management is optimistic about the balance of the year.

    The lift truck industry remains exceptionally strong in most major markets.
North American factory orders for new trucks continue at record levels, and the
resulting original equipment manufacturer (OEM) backlogs suggest that demand for
attachments, forks and tires will remain high well into 1999.  European OEM
numbers continue to show solid improvement for the second consecutive year, and
industry analysts forecast continued modest growth.

    Asian markets continue to be a concern. It is apparent that there are no 
short-term solutions to the economic and political problems in Japan, 
Southeast Asia and Korea.  The U.S. dollar continues to strengthen against 
these currencies, and we are reacting by accelerating our plans to increase 
local manufacturing capabilities in the region. Over the long-term, Asian 
markets will provide significant growth for the full range of Cascade 
products, and the Company intends to continue to serve this important region 
of the world.

    The Company is particularly pleased to report that its Australian 
subsidiary, Hyco-Cascade, recorded an operating profit in the first quarter, 
a dramatic turnaround from last year. With this quarter's results the Company 
is beginning to see positive results from its acquisition program.  
Management is continuing to implement its strategy by consolidating 
operations, looking for cost reduction opportunities in every aspect of the 
business and capitalizing on market synergies.

    Cost of sales during the first quarter of 1998 and 1997 was $73,635,000 and
$58,240,000, respectively.  For the first quarter of 1998 and 1997, cost of
sales as a percentage of net sales remained constant at 68.7%.  As a percentage
of net sales, cost of sales was 72.6% during the fourth quarter of 1997 and was
70.2% for the year ended January 31, 1998.  The Company is focusing on lowering
cost of sales as a percentage of sales.  During the first quarter of 1998 the
Company implemented selected price increases.  In addition, the Company
continues to emphasize cost reductions and manufacturing process 



<PAGE>

improvements at all of its facilities.  First quarter 1997 cost of sales 
included non-recurring inventory charges totaling $855,500 arising from 
revaluing inventory of purchased subsidiaries.

    Depreciation and amortization expense increased to $5,405,000, 5.0% of net 
sales in 1998 from $5,155,000, 6.1% of net sales in 1997.  The 1998 increase is
primarily the result of amortization of goodwill recorded with the purchase of
recently acquired subsidiaries.   

    The Company's selling and administrative expenses during the first quarter 
of 1998 were $17,600,000, 16.4% of net sales, versus $15,410,000, 18.2% of net
sales during the year earlier period.

    First quarter 1998 interest expense of $2,560,000 was higher than the 
$1,515,000 recorded during the 1997 period.  Increased interest expense is 
the result of additional financing incurred in connection with the purchase 
of recently acquired subsidiaries.

    Other income and expense for the first quarter of 1998 includes a pre-tax 
gain of $2,505,000 from the sale of an undeveloped parcel of land.

    The effective tax rate for the quarter was 32.7% compared with 34.0% for 
the first quarter of 1997 and 34.4% for the full year ended January 31, 1998.

LIQUIDITY AND CAPITAL RESOURCES

    During the first three months of 1998, the Company generated $6,873,000 
in cash from operating activities compared with $406,000 for 1997.  Cash and 
cash equivalents at the end of the first quarter of 1998 totaled $20,045,000. 
 

    The Company's total long and short-term debt to equity ratio was 1.39 to 
1.00 and working capital was $86,936,000 at April 30, 1998.  As of April 30, 
1998, the Company had approved borrowing arrangements with commercial banks 
totaling $32,541,000 of which $15,878,000 was unused.  The Company's 
available cash and credit facilities are more than sufficient to meet its 
short-term requirements.

    For the quarter ended April 30, 1998, capital expenditures totaled 
$2,618,000 compared to $6,579,000 recorded during the corresponding 1997 
period.  Capital expenditures for new facilities, machinery, equipment and 
tooling over the preceding five years totaled approximately $73,389,000.  
Planned capital expenditures for 1998 are estimated at $16,336,000 and 
include $5,815,000 for implementation of an enterprise-wide software system 
to link all of the Company's core business systems.  Implementation will be 
phased-in throughout the operating units with final completion scheduled for 
fiscal 2000.  The Company plans to use cash generated from operations and 
existing credit facilities to fund 1998 capital expenditures.



<PAGE>

    The US dollar weakened when compared to the most significant foreign 
currencies where the Company operates.  As a result, foreign currency 
translation adjustments increased shareholders' equity by $1,643,000 ($.12 
per share) for the quarter and year to date.

IMPACT OF THE YEAR 2000 ISSUE

    The Year 2000 Issue is the result of computer programs being written 
using two digits rather than four to define the applicable year.  Some of the 
Company's computer programs that have date-sensitive software may recognize a 
date using "00" as the year 1900 rather than the year 2000.  This could 
result in a system failure or miscalculations causing disruptions of 
operations, including, among other things, a temporary inability to process 
transactions, send invoices, ship product or engage in any number of similar 
business activities.

    Based on a recent assessment, the Company determined that it would need to
modify or replace portions of its software so that its computer systems will
properly utilize dates beyond December 31, 1999.  The Company presently believes
that with modifications to existing software and conversions to new software,
the Year 2000 Issue can be mitigated.  However, if such modifications and
conversions are not made, or not completed timely, the Year 2000 issue could
have a material impact on the operations of the Company.

    The Company has initiated formal communications with all of its 
significant suppliers and large customers to determine the extent to which 
the Company is vulnerable to those third parties' failure to remediate their 
own Year 2000 Issue. There can be no guarantee that the systems of other 
companies on which the Company's systems rely will be timely converted, or 
that a failure to convert by another company, or a conversion that is 
incompatible with the Company's systems, would not have a material adverse 
effect on the Company.  The Company has determined that it has no exposure to 
contingencies related to the Year 2000 Issue for the products it has sold.

    The Company has initiated the implementation of an enterprise-wide 
resource planning (ERP) software system to link all of its core business 
systems throughout the Company.  This implementation was the result of normal 
business migration to improved and expanded software systems to increase the 
Company's ability to improve its operational efficiency, reduce costs and 
enhance overall quality.  As part of this implementation, the Company will 
also replace those software systems that will encounter the Year 2000 Issue.  
The Company plans to complete the ERP project in the year 2000 and will 
complete those portions of the project that will address the Year 2000 Issue 
in 1999. The total cost of the ERP project is estimated at $9,000,000 and is 
being funded through operating cash flows and the Company will lease portions 
of the system.  Of the project cost, approximately  $7,900,000 will be 
capitalized.  The remaining $1,100,000 will be expensed or placed under 
operating leases.  Actual project costs incurred through the end of the first 
quarter of 1998 total $1,378,000 on the ERP project.

    The costs of the project and the date on which the Company plans to 
complete the Year 2000 modifications are based on management's best estimates 
which were derived 



<PAGE>

utilizing numerous assumptions of future events including the continued 
availability of certain resources, third party modifications, plans and other 
factors.  However, there can be no guarantee that these estimates will be 
achieved and actual results could differ materially from those plans.  
Specific factors that might cause such material differences include, but are 
not limited to, the availability and cost of personnel trained in this area, 
the ability to locate and correct all relevant computer codes and similar 
uncertainties.

FORWARD-LOOKING STATEMENTS

    Forward-looking statements throughout this report are based upon 
assumptions involving a number of risks and uncertainties.  Factors which 
could cause actual results to differ materially from these forward-looking 
statements include, but are not limited to competitive factors in, and the 
cyclical nature of, the lift truck industry; fluctuations in lift truck 
orders or deliveries, availability and cost of raw materials; general 
business and economic conditions in North America, Europe and Asia; foreign 
currency fluctuations; effectiveness of the Company's cost reduction 
initiatives; and the Company's success in organizationally and operationally 
integrating recently acquired businesses.




<PAGE>

                 CASCADE CORPORATION AND SUBSIDIARY COMPANIES 

                                   PART 1

                         CONSOLIDATED BALANCE SHEET

                      (in thousands, except share data)

<TABLE>
<CAPTION>
                                                       April 30      January 31
                                                         1998           1998
                                                      ---------      ----------
                                                     (unaudited)
<S>                                                    <C>            <C>
Assets

Current assets:                                                
 Cash and cash equivalents.......................      $ 20,045       $ 12,966
 Accounts receivable, less allowance                           
   for doubtful accounts of $738 and $743........        71,803         62,271
 Inventories, at average cost                                  
   which is lower than market:
   Finished goods and components.................        44,985         42,280
   Goods in process..............................         2,170          3,965
   Raw materials.................................        13,165         12,035
                                                      ---------      ----------
                                                         60,320         58,280

 Deferred income taxes...........................         1,165          1,165
 Prepaid expenses................................         6,749          6,011
                                                      ---------      ----------
   Total current assets..........................       160,082        140,693

Property, plant and equipment, at cost less                    
   accumulated depreciation......................       100,249        101,147
Deferred income taxes............................         4,507          4,044
Goodwill.........................................        93,953         94,982
Other Assets.....................................        10,258          8,726
                                                      ---------      ----------
   Total assets..................................      $369,049       $349,592
                                                      ---------      ----------
                                                      ---------      ----------
   
Liabilities and Shareholders' Equity                           
   
Current liabilities:                                           
 Notes payable to banks..........................      $ 16,663       $ 13,193
 Current portion of long-term debt...............         2,207          2,501
 Accounts payable................................        28,420         23,604
 Accrued payroll and payroll taxes...............         6,814          7,331
 Other accrued expenses..........................        19,042         13,001
                                                      ---------      ----------
   Total current liabilities.....................        73,146         59,630
   
Long-term debt...................................       144,375        144,785
Accrued environmental expenditures...............        10,316         10,316
Other liabilities................................         3,292          3,720
                                                      ---------      ----------
   Total liabilities.............................       231,129        218,451
                                                      ---------      ----------
   
Mandatorily redeemable convertible preferred 
  stock, no par value, 305,000 and 330,000 
  shares issued and outstanding..................         4,575          4,950
Minority interest................................        15,640         15,640
   
Shareholders' equity:                                          
Common stock, $.50 par value, authorized                       
   20,000,000 shares; 11,989,704 and 
   11,988,208 outstanding........................         5,995          5,994
Additional paid-in capital.......................         3,734          3,711
Retained earnings................................       114,578        109,091
Cumulative foreign currency                                    
   translation adjustments.......................        (6,373)        (8,016)
Treasury stock, at cost                                        
   (127,498 shares)..............................          (229)          (229)
                                                      ---------      ----------
   Total shareholders' equity....................       117,705        110,551
                                                      ---------      ----------
   Total liabilities and 
   shareholders' equity..........................      $369,049       $349,592
                                                      ---------      ----------
                                                      ---------      ----------
</TABLE>

The accompanying notes to consolidated financial statements are an integral part
of this statement.                                             



<PAGE>

                 CASCADE CORPORATION AND SUBSIDIARY COMPANIES

                       CONSOLIDATED STATEMENT OF INCOME
   
                 (unaudited -- in thousands, except share data)
   
<TABLE>
<CAPTION>
                                                         Three months ended
                                                              April 30,
                                                     --------------------------
                                                         1998            1997
                                                     -----------     ----------
<S>                                                  <C>             <C>
Net sales.........................................   $   107,125     $   84,725
                                                     -----------     ----------


Costs and expenses:                                            
   Cost of goods sold.............................        73,635         58,240
   Depreciation and amortization..................         5,405          5,155
   Selling and administrative expenses............        17,600         15,410
                                                     -----------     ----------
                                                          96,640         78,805
                                                     -----------     ----------

Operating income.................................         10,485          5,920
   
   Interest expense..............................          2,560          1,515
   Interest income...............................           (190)          (130)
   Other expense, net............................         (2,020)           140
                                                     -----------     ----------
   
Income before income taxes.......................        10,135          4,395
Income taxes.....................................         3,320          1,495
                                                     -----------     ----------
   
Net income.......................................    $    6,815      $    2,900
                                                     -----------     ----------
                                                     -----------     ----------

Basic earnings per share.........................    $     0.56      $     0.23
                                                     -----------     ----------
                                                     -----------     ----------

Diluted earnings per share.......................    $     0.51      $     0.23 
                                                     -----------     ----------
                                                     -----------     ----------
   
Diluted weighted average shares outstanding......    13,297,768      12,852,041
                                                     -----------     ----------
                                                     -----------     ----------
   
</TABLE>
   
The accompanying notes to consolidated financial statements are an integral part
of this statement.                                             



<PAGE>

                 CASCADE CORPORATION AND SUBSIDIARY COMPANIES

                     CONSOLIDATED STATEMENT OF CASH FLOWS

                          (unaudited - in thousands)

<TABLE>
<CAPTION>
                                                          Three months ended
                                                               April 30
                                                        ----------------------
                                                         1998           1997
                                                        -------        -------
<S>                                                     <C>            <C>
Cash flows from operating activities:                          
 Net income......................................       $ 6,815        $ 2,900
  Adjustments to reconcile net income to net                   
   cash provided by operating activities:                      
    Depreciation and amortization................         5,405          5,155
    Deferred income taxes........................          (444)          (393)
    Gain on disposal of property.................        (2,505)           --
Changes in operating assets and liabilities:                   
    Accounts receivable..........................        (9,532)        (6,025)
    Inventories..................................        (2,040)          (281)
    Prepaid expenses.............................          (738)           649
    Account payable and accrued expenses.........        10,340         (2,028)
    Other liabilities............................          (428)           429
                                                        -------        -------
   Net cash provided by operating activities.....         6,873            406
                                                        -------        -------

Cash flows from investing activities:                          
 Acquisition of property, plant and equipment.....       (2,618)        (6,579)
 Business acquisitions............................         --          (64,943)
 Other assets.....................................       (1,518)           511
 Proceeds from sale of property...................        2,606           --
                                                        -------        -------
   Net cash used in investing activities..........       (1,530)       (71,011)
                                                        -------        -------
   
Cash flows from financing activities:                          
 Payments on long-term debt.......................         (852)          (797)
 Notes payable to banks, Net......................        3,470         67,042
 Repurchase of manditorily redeemable convertible              
   preferred stock................................         (375)          --
 Issuance of common stock.........................           24           --
 Cash dividends...................................       (1,328)        (1,342)
                                                        -------        -------
   Net cash provided by financing activities......          939         64,903
                                                        -------        -------
   
Effect of exchange rate changes...................          797          1,222
                                                        -------        -------
   
Increase (decrease) in cash and cash equivalents..        7,079         (4,480)
   
Cash and cash equivalents at                                   
 beginning of year................................       12,966         15,642
                                                        -------        -------
   
Cash and cash equivalents at end of period........      $20,045        $11,162
                                                        -------        -------
                                                        -------        -------
   
Supplemental disclosure of cash flow information:              
   Cash paid during the period for:
     Interest....................................       $ 1,448        $ 1,349
     Income taxes................................       $ 3,945        $   628
   Exchangeable preferred stock issued for
   acquisition...................................       $  --          $15,640

</TABLE>

The accompanying notes to consolidated financial statements are an integral part
of this statement.



<PAGE>

                 CASCADE CORPORATION AND SUBSIDIARY COMPANIES

          CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                                                          Fiscal 
                                                                        Year ended
                                                        April 30        January 31
                                                          1998             1998
                                                        --------        ----------
                                                       (unaudited)
<S>                                                     <C>              <C>
COMMON STOCK
   Beginning balance.............................          5,994            6,024 
   Common stock issued (repurchased).............              1              (30)
                                                        --------          --------
                                                           5,995            5,994
                                                        --------          --------

ADDITIONAL PAID-IN CAPITAL
   Beginning balance.............................          3,711             --   
   Treasury shares issued for acquisition........            --             3,711 
   Common stock issued...........................             23             -- 
                                                        --------          --------
                                                           3,734            3,711 
                                                        --------          --------

RETAINED EARNINGS
   Beginning balance.............................        109,091           94,561 
   Net income....................................          6,815           21,040 
   Cash dividend.................................         (1,328)          (5,505)
   Common stock repurchsed.......................           --             (1,005)
                                                        --------          --------
                                                         114,578          109,091 
                                                        --------          --------

CUMULATIVE FOREIGN CURRENCY ADJUSTMENTS
   Beginning balance.............................        (8,016)           (1,142)
   Translation adjustments.......................         1,643            (6,874)
                                                        --------          --------
                                                         (6,373)           (8,016)
                                                        --------          --------

TREASURY STOCK
   Beginning balance.............................          (229)             (686)
   Treasury shares issued for acquisitions.......          --                 457 
                                                        --------          --------
                                                           (229)             (229)
                                                        --------          --------

TOTAL SHAREHOLDERS' EQUITY.......................       $117,705          $110,551 
                                                        --------          --------
                                                        --------          --------

</TABLE>

The accompanying notes to consolidated financial statements are an integral part
of this statement.



<PAGE>

                 CASCADE CORPORATION AND SUBSIDIARY COMPANIES
                
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - COMPREHENSIVE INCOME

     In June 1997, the Financial Accounting Standards Board (FASB) issued SFAS
No. 130, "Reporting Comprehensive Income". The Company has adopted the standard
as of February 1, 1998.  Total comprehensive income consists of the following:

<TABLE>
<CAPTION>

                                                      For the quarter ended
                                                      ---------------------
                                                      April 30     April 30
                                                       1998          1997
                                                      ------        -------
<S>                                                   <C>           <C>
     Net income..................................     $6,815        $ 2,900 
     Translation adjustment......................      1,643         (2,668)
                                                      ------        -------
     Total comprehensive income..................     $8,458        $   232 
                                                      ------        -------
                                                      ------        -------
</TABLE>

     Cumulative foreign currency translation adjustments represent the Company's
only other comprehensive income item.  The translation adjustment consists of
unrealized gains/losses in accordance with SFAS No. 52, "Foreign Currency
Translation".  The Company has no intention of liquidating the assets of the
foreign subsidiaries in the foreseeable future.



<PAGE>

                 CASCADE CORPORATION AND SUBSIDIARY COMPANIES
                         
                                SIGNATURES            
                         
                         
    The enclosed financial statements have not been certified by independent 
accountants.  However, to the best of my knowledge and belief these financial 
statements have been prepared in conformity with generally accepted 
accounting principles and on a basis substantially consistent with audited 
financial statements included in the annual report filed with the Commission 
for the preceding fiscal year.                        
                         
    The Company believes that all adjustments, consisting of normal recurring 
adjustments, necessary for a fair statement of the results of operations, 
have been included.                        
     
    Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.                      
                         
                         
                                       CASCADE CORPORATION 
                         
                         
                         
  June 12, 1998                         
-------------------                    /s/ Kurt G. Wollenberg   
     Date                              ------------------------------
                                           Kurt G. Wollenberg, 
                                        Vice President - Finance