1466593--2/26/2010--Otter_Tail

related topics

{cost, regulation, environmental}

{regulation, government, change}

{acquisition, growth, future}

{cost, contract, operation}

{debt, indebtedness, cash}

{condition, economic, financial}

{product, market, service}

{operation, international, foreign}

{operation, natural, condition}

{tax, income, asset}

{product, liability, claim}

{gas, price, oil}

Any significant impairment of our goodwill would cause a decrease in our assets and a reduction in our net operating performance. The inability of our subsidiaries to provide sufficient earnings and cash flows to allow us to meet our financial obligations and pay dividends to our shareholders could have an adverse effect on the Company. Economic conditions could negatively impact our businesses. If we are unable to achieve the organic growth we expect, our financial performance may be adversely affected. Our plans to grow and diversify through acquisitions may not be successful, which could result in poor financial performance. Our plans to acquire, grow and operate our nonelectric businesses could be limited by state law. The terms of some of our contracts could expose us to unforeseen costs and costs not within our control, which may not be recoverable and could adversely affect our results of operations and financial condition. We are subject to risks associated with energy markets. Certain of our operating companies sell products to consumers that could be subject to recall. We may experience fluctuations in revenues and expenses related to our electric operations, which may cause our financial results to fluctuate and could impair our ability to make distributions to shareholders or scheduled payments on our debt obligations. Actions by the regulators of our electric operations could result in rate reductions, lower revenues and earnings or delays in recovering capital expenditures. OTP s electric generating facilities are subject to operational risks that could result in unscheduled plant outages, unanticipated operation and maintenance expenses and increased power purchase costs. Changes to regulation of generating plant emissions, including but not limited to CO emissions, could affect our operating costs and the costs of supplying electricity to our customers. Fluctuations in wholesale electric sales and prices could result in earnings volatility. Our plastics operations are highly dependent on a limited number of vendors for PVC resin and a limited supply of PVC resin. The loss of a key vendor, or any interruption or delay in the supply of PVC resin, could result in reduced sales or increased costs for our plastics business. We compete against a large number of other manufacturers of PVC pipe and manufacturers of alternative products. Customers may not distinguish our products from those of our competitors. Reductions in PVC resin prices can negatively affect our plastics business. Competition from foreign and domestic manufacturers, the price and availability of raw materials, fluctuations in foreign currency exchange rates and general economic conditions could affect the revenues and earnings of our manufacturing businesses. Changes in the rates or methods of third-party reimbursements for our diagnostic imaging services could result in reduced demand for those services or create downward pricing pressure, which would decrease our revenues and earnings. Our health services businesses may be unable to continue to maintain agreements with Philips from which we derive significant revenues from the sale and service of Philips diagnostic imaging equipment. Technological change in the diagnostic imaging industry could reduce the demand for diagnostic imaging services and require our health services operations to incur significant costs to upgrade its equipment. Actions by regulators of our health services operations could result in monetary penalties or restrictions in our health services operations.

Full 10-K form ▸

1466593--2/26/2010--Otter_Tail_Corp