Business
Otter Tail Corporation Announces Second Quarter Earnings
Increases 2020 Earnings Per Share Guidance Range to $2.10-$2.30 Board of Directors Declares Quarterly Dividend of $0.37 Per Share FERGUS FALLS,
About this update from Otter Tail Corporation
[{"type":"text","content":"\nIncreases 2020 Earnings Per Share Guidance Range to $2.10-$2.30\n\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 June 30, 2020.\n\n\nSummary: \n\n\n\nConsolidated net income and diluted earnings per share were $17.0 million and $0.42 per share, respectively, compared with $15.4 million and $0.39 per share for the second quarter of 2019.\n\n\nConsolidated operating revenues decreased 15.9% to $192.8 million compared with $229.2 million for the second quarter of 2019, mostly due to a $27.5 million decrease in Manufacturing segment revenue.\n\n\nThe corporation is increasing its 2020 earnings per share guidance range to $2.10-$2.30 from $2.00‑$2.25 announced May 5, 2020.\n\n\nThe corporation maintains its long-term earnings per share growth rate target of 5% to 7% off a 2019 base.\n\n\n\nCEO Overview\n\n\n“Our second quarter earnings per share increased 7.7 percent over the second quarter of 2019 driven by increased earnings in our Electric segment. We are pleased with our second quarter financial results given the challenging economic times,” said President and CEO Chuck MacFarlane.\n\n\n“Employees across the organization continue to do an outstanding job of being responsive, flexible and determined while addressing all the challenges presented by COVID-19.\n\n\n“Otter Tail Corporation continues to focus on the health and safety of our employees, customers and communities, reliable electric service and on-time product delivery, and counter measures to limit the operational and financial impacts related to the COVID-19 pandemic.\n\n\n“We continue to be diligent in our health and safety efforts related to the ongoing pandemic and in monitoring how COVID-19 is impacting the economy and our businesses.\n\n\n“Our Electric segment quarter-over-quarter earnings increased $5.8 million due to increasing investments in our Merricourt Wind Energy Center and Astoria Station projects, effective cost management actions targeted at offsetting the impacts of COVID-19, and reductions in operating expenses compared to the second quarter of 2019 when Coyote Station was down for maintenance.\n\n\n“Our Manufacturing segment earnings decreased $3.8 million between the quarters driven by lower ...