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MDU Resources feeling good with third-quarter 2020 results

By |  November 5, 2020

Photo:MDU Resources Group, parent company of Knife River Corp., reported record third-quarter earnings of $153.1 million.

The earnings were an 11 percent increase over record third-quarter earnings in 2019. The company’s 2020 earnings through nine months ($277.9 million) are also up significantly over the same stretch of 2019 ($240.4 million).

“We are extremely pleased with our results through the third quarter,” says David Goodin, president and CEO of MDU Resources. “We started the year with strong momentum and, despite the challenges facing our nation, MDU Resources has continued to see outstanding operating performance throughout the year.

“The benefit of our balanced business mix was evident during the third quarter, as our construction companies had record earnings and maintained a strong backlog of work, while our regulated energy businesses continued to produce solid revenue and earnings,” Goodin adds.

Construction materials and services

MDU’s construction materials business had record third-quarter earnings of $107.3 million, compared to $102.6 million in the third quarter of 2019.

According to MDU, higher margins across most product lines drove the earnings increase. Asphalt and asphalt-related products experienced lower energy-related costs that resulted in higher margins, and ready-mixed concrete pricing was strong in most markets.

These increases were offset somewhat by wildfires and storms in certain operating areas, the company says.

MDU’s construction materials backlog of work through three quarters was $571 million, down compared to the record $747 million for the same period last year. The decrease in backlog this year is believed to be largely due to delays in public work bid-letting related to the pandemic, the company says.

Kevin Yanik

About the Author:

Kevin Yanik is the editor-in-chief of Pit & Quarry magazine. Yanik can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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