MDU Resources (MDU)

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MDU Resources Announces 2nd Quarter Earnings and Increases Guidance!

BISMARCK, N.D.--(BUSINESS WIRE)--July 24, 2003--MDU Resources Group, Inc. (NYSE:MDU - News) announced financial results for the three months ended June 30, 2003, showing consolidated earnings of $43.3 million, compared to $24.7 million for the same period last year. Earnings per common share, diluted, totaled 58 cents, compared to 35 cents per common share, diluted, for the second quarter of 2002.

ADVERTISEMENTEarnings for the six months ended June 30, 2003, totaled $63.2 million or 85 cents per common share, diluted. Earnings for the first six months of 2002 totaled $48.2 million or 68 cents per common share, diluted. However, 2003 earnings reflect a $7.6 million after-tax noncash transition charge to earnings reflecting the cumulative effect of the change in accounting for asset retirement obligations as required by the adoption of Statement of Financial Accounting Standards No. 143. In addition, 2002 earnings included the effects of a compromise agreement that resulted in a $16.6 million after-tax gain. Excluding the 2003 $7.6 million accounting charge and the 2002 $16.6 million compromise agreement, 2003 earnings would have totaled $70.8 million versus $31.6 million for the first six months of 2002.

Due to the continued strength of natural gas and oil commodity prices and its recent construction materials acquisition, the company is increasing its 2003 earnings per share guidance. Earnings per common share, diluted, before the cumulative effect of the accounting change discussed above, are now projected to be in the range of $2.20 to $2.45. Including the cumulative effect of the $7.6 million after-tax accounting change, earnings per common share, diluted, for 2003 are expected to be in the range of $2.10 to $2.35.

"I am pleased to announce that our earnings per share are up 66 percent for this quarter compared to the second quarter of 2002," said Martin A. White, chairman of the board, president and chief executive officer of MDU Resources. "Energy prices have been strong, and our construction materials company is having an even better year than 2002, which was a record year," White said. "Even though the economy has been challenged to recover this year and some businesses are still seeing the negative effects, our companies are doing quite well. We provide the goods and services that are essential to our country's infrastructure, which is the foundation of all businesses and a strong economy."