Business
Otter Tail Corporation Announces Third Quarter Earnings and Increases 2021 Earnings Per Share Guidance Driven by Continued Strong Results from Plastics Segment
Board of Directors Declares Quarterly Dividend of $0.39 Per Share FERGUS FALLS, Minn.--(BUSINESS WIRE)-- Otter Tail Corporation (Nasdaq: OTTR) today
About this update from Otter Tail Corporation
[{"type":"text","content":"\nBoard of Directors Declares Quarterly Dividend of $0.39 Per Share\n\n FERGUS FALLS, Minn.--(BUSINESS WIRE)--\nOtter Tail Corporation (Nasdaq: OTTR) today announced financial results for the quarter ended September 30, 2021.\n\nSUMMARY\n\nCompared to the quarter ended September 30, 2020:\n\n\nConsolidated operating revenues increased 34.2% to $316.3 million.\n\n\n\nConsolidated net income increased 46.8% to $52.8 million primarily driven by strong Plastics segment performance resulting from unique market conditions.\n\n\n\nDiluted earnings per share increased 44.8% to $1.26 per share.\n\n\nThe corporation increases its 2021 diluted earnings per share guidance range to $4.05 to $4.20 reflecting a range of 73% to 79% growth from 2020 reported diluted earnings per share of $2.34.\n\nCEO OVERVIEW\n\n“Otter Tail Corporation, through the efforts of our employees, achieved outstanding financial results during the third quarter of 2021,” said President and CEO Chuck MacFarlane. “Our Plastics segment continues its outstanding year as we capitalize on unique industry supply and demand conditions. PVC resin supply constraints began from the extreme cold weather in February which caused resin suppliers to temporarily close various petrochemical plants in the Gulf Coast region and was exacerbated in the third quarter of 2021 from disruptions caused by Hurricane Ida. These supply constraints, along with strong customer demand, have led to low PVC pipe inventories leading to high PVC pipe prices and margins at levels not previously experienced. We expect these supply and demand conditions to persist for the remainder of 2021 and continue during the first half of 2022. We currently expect these conditions to subside beginning in the second half of 2022.\n\n“Electric segment earnings were down from the third quarter 2020 primarily due to increased costs arising from planned major maintenance at Big Stone Plant. Manufacturing segment earnings improved from the third quarter in 2020 primarily as a result of strong horticultural end market performance at T.O. Plastics.\n\n“Otter Tail Power filed its Integrated Resource Plan in September. The requests in the five year action plan include the addition of dual fuel capability at our Astoria Station natural gas plant, the addition of 150 MW of solar generation in 2025 and the commencement of the proce...