Aug. 06--Strong quarter led again by CapX2020, other projects
The investment in CapX2020 and other projects are continuing to pay off for Otter Tail Corp., which recorded another strong quarter.
The corporation reported a 33.1 percent increase in profit and 10.5 percent increase in revenue for the second quarter, which ended June 30. It released its second quarter earnings Monday, reporting $10 million in profit, or 27 cents per share, up from $7.5 million, or 21 cents per share, in the second quarter of 2013. Revenue was $234.6 million, up from $212.4 million a year ago.
That's after a 40 percent increase in profit for its first quarter, which the company also attributed to the CapX2020 project, along with a cold winter. This quarter, Otter Tail Power Co., the corporation's subsidiary headquartered in Fergus Falls, gave the company a boost thanks to three CapX2020 transmission projects, two 345-kilovolt transmission projects and an environmental upgrade at Big Stone Plant.
"Our strong 2014 first quarter performance has continued in the second quarter," CEO Jim McIntyre said. "We continue to see earnings growth from our capital
investments at (Otter Tail Power). Regulatory mechanisms in North Dakota, South Dakota, and Minnesota allow for a return on the funds we've invested in five large regional transmission projects and the environmental upgrade at Big Stone Plant."
Otter Tail Power and the electric segment again led the way, as revenue and profit were $92.9 million and $5.2 million, respectively, compared with $82.9 million and $3.6 million for the second quarter of 2013.
Manufacturing revenues and net income were $53.4 million and $2.3 million, respectively, compared with $49.8 million and $2.0 million last year.
Plastics revenues and net income were $48.1 million and $3.4 million, respectively, compared with $44.8 million and $3.9 million; and construction revenues and net income were $40.2 million and $1.9 million, respectively, compared with $35.0 million and $0 for last year.
Total revenue for the first half of the fiscal year is $475 million, up from $430 million last year, and profit is $31.4 million, up from $22.7 million.
The company increased its guidance range for the fiscal year of $1.60 to $1.80 per share to $1.65 to $1.80 per share. It also declared a quarterly dividend of 30.25 cents per share, payable on Sept. 10 to shareholders as of Aug. 15.
About the corporation
Otter Tail Corp. has interests in diversified operations that include an electric utility and manufacturing and infrastructure businesses consisting of its Manufacturing, Plastics and Construction segments. Otter Tail Corp. stock trades on the NASDAQ Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are located in Fergus Falls and Fargo.
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