MDU Resources reported second-quarter earnings of $40.6 million, or 21 cents per share, in 2017 compared with a loss of $109.3 million, or 56 cents per share, in the second quarter of 2016.
According to the company, in the second quarter of 2017, its construction services earnings were up $5.4 million, a 77 percent increase on 18-percent revenue growth, compared with the second quarter of 2016. The total earnings for the company’s construction services business was $12.4 million, and the increase reflects higher earnings in all service lines, especially in inside work where the company saw higher workloads and margins, MDU reports.
In addition, the company reported record year-to-date revenues of more than $625 million through June 30 in its construction services sector. According to the company, revenue guidance in this sector increased to a range of $1.2 billion to $1.3 billion, and construction services backlog at the end of the second quarter of 2017 was $596 million, a 17 percent increase from $508 million in the second quarter of 2016.
Second quarter 2017 earnings in the construction materials business were $21.2 million, compared with the company’s record second quarter 2016 earnings of $33.7 million. Because of a slow start to the construction season, revenue guidance in the construction materials business lowered to a range of $1.8 billion to $1.9 billion, the company adds. In addition, construction materials backlog at the end of the second quarter of 2017 was $766 million compared with $805 million in the second quarter of 2016.
“Our second quarter results emphasize the benefits of our two-platform business model,” says David Goodin, president and CEO of MDU Resources. “Construction services is off to a strong start with record year-to-date revenue of more than $635 million and significant earnings growth, so we are increasing our revenue guidance for this business to a range of $1.2 billion to $1.3 billion. Workload remains strong for our construction businesses, as evidenced by a combined backlog that’s approximately 4 percent higher than this time last year. Both construction services and construction materials increased backlog since the first quarter, reflecting an active bidding environment.”
