MDUResources Group Inc. had a record year in 2006, increasing consolidated earnings by $40.7 million over 2005, the company says.

The company announced Tuesday that its net profits increased from $274.4 million in 2005 to $315.1 million in 2006.

"Our overall results in 2006 were absolutely outstanding,"said Terry D. Hildestad, president and chief executive officer. "We had record earnings in nearly all of our lines of business, including phenomenal performance from our construction materials and mining and construction services operations."

The company's earnings per common share increased 20 percent, from $1.53 a share in 2005, to $1.74 a share in 2006.

As Hildestad said, much of the growth was attributed to a 56 percent increase in construction materials and mining resources, from $55.1 million in 2005, to $85.7 million in 2006.

Construction services alone almost doubled last year's earnings of $14.6 million, with record earnings of $27.8 million. The company expects revenues in 2007 to be similar to 2006's record levels.

Pipeline and energy services also had record earnings, increasing from 2005's $22.1 million to $30 million.

But the company lost 80 percent of its independent power production earnings in 2006, mainly due to the sale of equity interest in a Brazillian electric generating facility. The sale of that facility cost MDUResources Group $15.6 million in earnings, according to a news release. Lower revenues and higher interest from two other electric generating facilities also reduced earnings.

The company says it has retained the Goldman, Sachs & Co. investment bank as a financial adviser and was exploring the sale of independent power production assets of its Centennial Energy Resources LLC subsidiary, based in Bismarck.

For 2007, earnings per common share are projected in the range of $1.50 to $1.70, compared to 2006's guidance of $1.45 to $1.65.

"We are looking forward to another strong year in 2007 as we continue to expand upon our corporation's legacy of leadership in building a strong America,"Hildestad said.

Last year, MDU Resources Group Inc. bought into or acquired six companies, the most recent being a $50 million joint investment with Companhia Energetica de Minas Gerais and Brascan Brasil Ltda. in acquiring Schahin Energia's interest in three electric energy transmission lines which Schahin had owned jointly with Cia. Tecnica de Engenharia Eletrica-Alusa in Brazil. Alusa continues its ownership in these transmission assets.

In September, Knife River Corp., which is under the MDUResources Group umbrella, acquired Kent's Oil Service, a 15,000-ton liquid asphalt facility, founded in 1984 and headquartered in Stockton, Calif.

Knife River also bought Wm. Winkler Co. and Valley Asphalt and Paving - both Spokane, Wash., companies - which were acquired in April.

MDU Resources Group is still in the process of finalizing the acquisiton of Washington-based natural gas company Cascade Natural Gas Corp., which would effectively double the number of natural gas utility customers, according to a news release.

MDUResources Group Inc., is an investor-owned company based in Bismarck. It's the parent company of Montant-Dakota Utilities, which provides electricity to portions of eastern Montana, North Dakota, South Dakota and Wyoming.

(Reach reporter Crystal Reid at 250-8261 or at crystal.reid@;bismarcktribune.com.)