Q3 2024 Otter Tail Corp Earnings Call Transcript
Key Points
- Otter Tail Corp (OTTR) exceeded expectations with year-to-date earnings ahead of last year by 4%.
- Electric segment earnings increased by 16% due to interim rates in North Dakota and a favorable FERC ruling.
- The company increased and narrowed its 2024 earnings guidance, indicating strong financial performance.
- Otter Tail Power's five-year capital spending plan is expected to produce a rate-based growth of 7.7%.
- The Advanced Metering Infrastructure project is progressing well, with 90% of meters upgraded, expected to reduce operating expenses.
- Diluted earnings per share decreased by 7% compared to the third quarter of 2023.
- Plastic segment earnings decreased by 8% due to declining PVC pipe sales prices.
- Manufacturing segment earnings decreased by 71% due to demand-related headwinds and lower sales volumes.
- The company faces increased competition from import markets, affecting T.O. Plastics' primary horticulture market.
- Class action lawsuits against pipe manufacturers, including Otter Tail Corp (OTTR), pose potential legal challenges.
Good morning and welcome to Otter Tail Corporation's third quarter, 2024 earnings conference call.
(Operator Instructions)
I would now like to turn the call over to the company for their opening comments.
Good morning, everyone and welcome to our third quarter, 2024 earnings conference call. My name is Beth Eiken and I'm Otter Tail Corporation's manager of investor relations. Last night, we announced our third quarter financial results.
Our complete earnings release and slides accompanying this call are available on our website at ottertail.com. Our recording of this call will be available on our website later today with me on the call today are Chuck MacFarlane Otter Tail Corporation's President and CEO and Todd Wahlund, Otter Tail Corporation's Vice President and CFO. Before we begin. I want to remind you that we will be making forward-looking statements during the course of this call.
As noted on slide 2, these statements represent our current views and expectations of
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