MDU Resources releases first-quarter 2017 performance report

MDU Resources Group Inc.‘s construction materials business reported a seasonal first-quarter loss of $19.9 million, compared to a loss of $14.5 million in 2016.

This business saw a later construction start in most regions compared to last year as wet or snowy weather delayed work, the company says. The construction materials backlog at the end of first quarter was $725 million, compared to the first quarter of 2016’s record backlog of $831 million.

“Our construction services business is off to a good start for the year, particularly with inside construction and industrial workloads, where earnings are up and backlog has remained consistent,” says David Goodin, president and CEO of MDU Resources. “While we have lower backlog at the construction materials business, primarily in the north central region, we continue to see a strong bidding environment in all regions.

“We are optimistic about the potential opportunities from infrastructure spending packages that have passed or are being considered within a number of states where this business operates, such as California, Idaho and Montana,” Goodin adds. “On a federal level, we are anticipating more projects being bid from the five-year, $305-billion Fixing America’s Surface Transportation Act.”

MDU Resources reports that its construction services business earned $7.4 million in the first quarter of 2017, up 23 percent from $6 million in 2016. The increase was mainly the result of higher inside construction workloads and margins in the western and central regions, as well as increased industrial construction workloads and margins.

Project backlog for MDU Resources remains steady at $529 million at the end of first quarter 2017, compared to $530 million in 2016, the company adds.

Overall, MDU Resources reported 12 percent higher first-quarter earnings from continuing operations of $35.5 million compared to first-quarter 2016 earnings from continuing operations of $31.6 million.

Including discontinued operations, MDU Resources reported first-quarter earnings of $37.2 million. That compares to $24.7 million in first quarter of 2016.

“We are pleased with our solid first-quarter results, and we are looking forward to the growth opportunities we see through the rest of the year,” Goodin says.