MDU Resources reflects on the start of 2022

The construction materials business at MDU Resources Group had a seasonal loss of $40 million in the first quarter this year.

The MDU Resources construction materials experienced a 2021 first-quarter loss of $30.8 million.

Although the MDU construction materials business had record first-quarter revenues of $310 million, the company says sales were offset by higher operating expenses such as fuel, materials and labor. MDU Resources says it increased – and continues to increase – pricing to offset higher operating expenses. And it expects to see a greater benefit from the price increases as construction season gets underway and sales volumes ramp up – particularly within the company’s northern U.S. operations.

MDU Resources, which is the parent company of Knife River Corp., says its construction materials backlog of work increased 15 percent at the end of the first quarter to $940 million. That figure compares to $819 million at the end of last year’s first quarter, MDU Resources says.

“We have a solid start to the year with higher revenues at all our businesses, including record revenues at our construction businesses,” says David Goodin, president and CEO of MDU Resources. “Although we continue, as expected, to experience inflationary headwinds, we remain optimistic about 2022 with an all-time record combined backlog of work at our construction companies and growth projects underway at our regulated energy delivery businesses. With good operational momentum and pricing increases primed to be impactful as construction season heats up, we are increasing revenue guidance for our construction materials business and maintaining our earnings per share guidance of $2.00 to $2.15 for 2022.”