Otter Tail Corporation (OTC) reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance across its business segments.
For the three months ended September 30, 2024, operating revenues decreased to $338.0 million from $358.1 million in the same period of 2023, marking a decline of 5.6%. Operating income also fell by 11.2% to $107.5 million, down from $121.1 million. Net income for the quarter was $85.5 million, a decrease of 7.1% compared to $92.0 million in Q3 2023. Basic earnings per share decreased to $2.04 from $2.21 year-over-year.
In contrast, for the nine months ended September 30, 2024, operating revenues slightly decreased to $1.03 billion from $1.04 billion in the prior year, while operating income increased by 1.8% to $313.4 million. Net income for the nine-month period rose to $246.8 million, up 4.4% from $236.4 million in 2023.
The Electric segment reported stable revenues of $130.4 million for Q3 2024, a slight increase from $130.3 million in Q3 2023. However, year-to-date revenues for the Electric segment decreased to $384.7 million from $396.0 million. The Manufacturing segment experienced a significant revenue drop, with Q3 revenues falling to $79.9 million from $100.7 million, a decline of 20.6%. The Plastics segment, however, saw a slight increase in revenues to $127.8 million from $127.1 million.
The company’s total assets increased to $3.57 billion as of September 30, 2024, up from $3.24 billion at the end of 2023. Cash and cash equivalents also rose to $280.0 million from $230.4 million. Long-term debt increased to $947.0 million from $827.0 million, primarily due to the issuance of $120.0 million in senior unsecured notes in March 2024.
Strategically, OTC announced an agreement to acquire a solar facility for $23.6 million, expected to close in the second half of 2025, which aligns with its focus on renewable energy. The company is also navigating regulatory changes, including new EPA rules regarding coal combustion residuals, which may impact its operations.
Overall, while Otter Tail Corporation faced challenges in certain segments, it demonstrated resilience in profitability and continued to invest in growth opportunities.
About Otter Tail Corp
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