MDU Resources Q2 Profit Falls, Slashes FY22 Guidance; Plans Spinoff Of Knife River

(RTTNews) - MDU Resources Group, Inc. (MDU) Thursday reported a sharp decline in second-quarter earnings and slashed earnings guidance for the full year. In a separate announcement, MDU Resources revealed a plan to spinoff construction materials and contracting business Knife River Corp.

The provider of essential products and services reported second-quarter earnings of $70.7 million, or 35 cents per share, compared to second-quarter earnings of $100.2 million, or 50 cents per share.

On average, 4 analysts polled by Thomson Reuters expected the company to earn $0.51 per share. Analysts' estimates typically exclude special items.

Revenue for the quarter increased to $1.720 billion, up from $1.423 billion last year.

For the full year, MDU Resources now expects earnings per share in the range of $1.75 to $1.90 in 2022, while the earlier guidance was in a range of $2.00 to $2.15 per share. Wall Street expects earnings of $2.01 per share on revenue of $6.13 billion.

In a separate news release today, MDU Resources announced its plan to separate Knife River Corporation through a tax-free spinoff. MDU Resources expects the transaction to leave each company positioned for durable growth and shareholder value creation.