Otter Tail Corporation Announces Second Quarter Earnings, Increases 2023 Earnings Guidance, Board of Directors Declares Quarterly Dividend of $0.4375 per Share

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, 2023.\n\n\nSUMMARY\n\n\nCompared to the quarter ended June 30, 2022:\n\n\n\nConsolidated operating revenues decreased 16% to $338 million.\n\n\n\nConsolidated net income decreased 5% to $82 million.\n\n\n\nDiluted earnings per share decreased 5% to $1.95 per share.\n\n\n\nCEO OVERVIEW\n\n\n“We are pleased with our second quarter financial results,” said President and CEO Chuck MacFarlane, “with our employees continuing to adapt to changing market conditions. Our Electric segment produced earnings growth of 4 percent compared to the second quarter of 2022, primarily driven by the recovery of rate base investments. Manufacturing segment earnings decreased 21 percent due to lower sales volumes of horticulture products and unfavorable manufacturing cost absorption. As expected, Plastics segment earnings declined from the second quarter of 2022, driven by general end market softness and reductions in sales volumes as distributors continue to manage inventory levels.\n\n\n“We look forward to substantial completion of our 49 MW Hoot Lake Solar project, which is currently expected to be placed in service on time and on budget in the third quarter of 2023. Hoot Lake Solar is being constructed on and near the retired Hoot Lake coal plant property in Fergus Falls, Minnesota, allowing us the unique opportunity to utilize our existing transmission rights, substation and land. The project has received renewable rider approval in Minnesota and all costs and benefits of the project are assigned to Minnesota customers.\n\n\n“We are increasing our 2023 diluted earnings per share guidance to a range of $5.70 to $6.00 from our previous range of $4.55 to $4.85. The increase in earnings guidance is due to stronger than expected Plastics segment performance experienced in the second quarter of 2023, which is expected to continue through the remainder of the year.\n\n\n“Our long-term focus remains unchanged - executing our strategy to grow our business and achieve operational, commercial and talent excellence to strengthen our position in the markets we serve. We now expect a normalizing of Plastics segment earnings during the last half of 2024. As we return to more normal levels of earnings in this segment, we...

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