result in increases in electric service costs could negatively impact
the corporation's net income, financial position and operating cash
flows if such costs cannot be recovered through rates granted by
ratemaking authorities in the states where the electric utility
provides service or through increased market prices for electricity.
-- The corporation's plans to grow and diversify through acquisitions may
not be successful and could result in poor financial performance.
-- The corporation's plan to grow its nonelectric businesses could be
limited by state law.
-- Competition is a factor in all of the corporation's businesses.
-- Economic uncertainty could have a negative impact on the corporation's
future revenues and earnings.
-- Volatile financial markets and changes in the corporation's debt rating
could restrict the corporation's ability to access capital and could
increase borrowing costs and pension plan expenses.
-- The price and availability of raw materials could affect the revenue
and earnings of the corporation's manufacturing segment.
-- The corporation's food ingredient processing segment operates in a
highly competitive market and is dependent on adequate sources of raw
materials for processing. Should the supply of these raw materials be
affected by poor growing conditions, this could negatively impact the
results of operations for this segment. This segment could also be
impacted by foreign currency changes between Canadian and United States
currency and prices of natural gas.
-- The corporation's plastics segment is highly dependent on a limited
number of vendors for PVC resin, many of which are located in the Gulf
Coast regions, and a limited supply of resin. The loss of a key ven
|SOURCE Otter Tail Corporation|
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