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Otter Tail Corporation Announces Record Second Quarter Earnings, Maintains Electric Segment Guidance and Increases Consolidated 2024 Annual Earnings Guidance
FERGUS FALLS, Minn.--(BUSINESS WIRE)-- Otter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2024. SUMMARY
About this update from Otter Tail Corporation
[{"type":"text","content":" FERGUS FALLS, Minn.--(BUSINESS WIRE)--\nOtter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended June 30, 2024.\n\n\nSUMMARY\n\n\n\nDiluted earnings per share increased 6% to $2.07 per share compared to the second quarter of 2023.\n\n\n\nMidpoint of 2024 earnings guidance increased 8% to $6.92 per share, or a return on equity of 18.7%.\n\n\n\nReceived approval from the Minnesota Public Utilities Commission on Integrated Resource Plan.\n\n\n\nCEO OVERVIEW\n\n\n“We are pleased with our second quarter financial results,” said President and CEO Chuck MacFarlane, “as our team members continue to perform well amid changing market conditions. Plastics segment earnings increased 9 percent compared to the second quarter of 2023 due to higher sales volumes driven by customer sales volume growth and improved end market demand, partially offset by lower sales prices. Manufacturing segment earnings increased 15 percent, primarily driven by higher margins at BTD Manufacturing, partially offset by lower sales volumes. Electric segment earnings decreased 6 percent from the same time last year due to the impact of unfavorable weather.\n\n\n“In May, Otter Tail Power received approval from the Minnesota Public Utilities Commission on its Integrated Resource Plan. The decision authorizes the addition of 200 to 300 megawatts of solar generation by 2027, and 150 to 200 megawatts of wind generation and 20 to 75 megawatts of battery storage by 2029. Otter Tail Power also received approval to designate the Minnesota portion of Coyote Station as an emergency-only resource starting as early as 2026, retaining the reliability benefits from the facility while simultaneously reducing its output and emissions.\n\n\n“The process to receive final approval of our Integrated Resource Plan was complicated by changing energy policy and environmental regulation impacting the power system and changing market conditions in MISO influencing our preferred plan since our initial filing in 2021. I am grateful to our team members and the other parties to the docket for reaching a favorable outcome that helps to preserve reliability while we continue transitioning to cleaner energy.\n\n\n“Despite our strong quarterly financial results within the Manufacturing segment, we continue to face end market demand related headwinds and anticipat...