Business
Otter Tail Corporation Announces 40% Increase in Third Quarter Earnings Per Share
Raises and Narrows its 2020 Earnings Per Share Guidance Range to $2.26-$2.36 Board of Directors Declares Quarterly Dividend of $0.37 Per Share FERGUS FALLS,
About this update from Otter Tail Corporation
[{"type":"text","content":"\nRaises and Narrows its 2020 Earnings Per Share Guidance Range to $2.26-$2.36\n\nBoard of Directors Declares Quarterly Dividend of $0.37 Per Share\n\n FERGUS FALLS, Minn.--(BUSINESS WIRE)--\nOtter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2020.\n\nSummary: \n\n\nConsolidated net income and diluted earnings per share for the third quarter of 2020 were $35.9 million and $0.87 per share, respectively, compared with $24.7 million and $0.62 per share for the same period last year.\n\n\nConsolidated operating revenues for the third quarter of 2020 increased 3.1% to $235.8 million compared with $228.7 million for the third quarter of 2019.\n\n\nThe corporation is raising and narrowing its 2020 earnings per share guidance range to $2.26-$2.36 from $2.10‑$2.30 announced August 3, 2020.\n\n\nCEO Overview\n\n“Our third quarter earnings per share increased 40 percent over the third quarter of 2019 driven by increased earnings in our Electric and Plastics segments. We are extremely pleased with our third quarter financial results given the challenging economic times,” said President and CEO Chuck MacFarlane.\n\n“Employees across the organization continue to do an outstanding job of being responsive, flexible and determined while addressing COVID-19 challenges.\n\n“We continue to focus on the health and safety of our employees, customers and communities, while providing reliable electric service and on-time product delivery and taking counter measures to limit the operational and financial impacts related to the COVID-19 pandemic.\n\n“Our Electric segment third quarter earnings increased $7.1 million due to increasing investments in our Merricourt Wind Energy Center and Astoria Station projects, a favorable decision regarding the state jurisdictional treatment of federally approved transmission rate incentives, effective cost management actions targeted at offsetting the impacts of COVID-19, and reductions in operating expenses.\n\n“We continued to experience reduced overall electric sales to industrial and commercial customers during the third quarter. Our sales to residential customers were strong. The reduction in industrial and commercial sales is primarily due to demand reduction related to COVID-19.\n\n“Our Plastics segment third quarter earnings increased $4.9 million compare...