Goodin: MDU businesses finished 2022 ‘strong’

MDU Resources Group reported its fourth-quarter 2022 and year-end results, noting how its construction materials business had a record revenue of $2.53 billion last year.

MDU’s construction materials business earned $116.2 million in 2022, the company adds.

According to MDU, the performance of its construction materials business improved in the second half of the year as adjustments to inflationary pressures took effect. The full-year margins of Knife River Corp. – MDU’s construction materials subsidiary – decreased due to higher costs tied to asphalt oil, labor, fuel and cement. Higher interest expense also negatively impacted results, MDU says.

Additionally, MDU says unfavorable weather early in 2022 and during the fourth quarter across the majority of Knife River’s markets shortened the company’s construction season. Demand, however, remains strong for construction materials and contracting work, MDU says, as evidenced by a record backlog of $935 million at the end of 2022.

“Our businesses performed very well in 2022 and finished the year strong,” says David Goodin, president and CEO of MDU Resources. “We are particularly pleased with results in the latter half of the year as we saw our operational adjustments, including product pricing, offsetting inflationary pressures. We see this momentum continuing into 2023 as we remain focused on safely and efficiently providing essential products and services to our customers while making great progress toward completing the planned spinoff of our construction materials business, Knife River Corp., and the strategic review of our construction services business, MDU Construction Services Group.”