Associated Press Writer

MDU Resources Group Inc. is reporting a record profit in 2007 and an increase in its dividends for the 17th consecutive year.

The Bismarck-based energy, mining and construction company posted earnings of $431 million, up from $315.1 million in 2006, a 37 percent increase.

"We had a great year," said Terry Hildestad, president and chief executive officer. "We're really focused now on this year."

Revenues increased from $4 billion in 2006 to $4.25 billion in 2007, a 6 percent jump.

MDU has operations in 45 states and Brazil, and has about 14,500 employees. The company said 2007 was the fifth consecutive year of record profit. The company surpassed the 2006 record profit in the first nine months of 2007.

MDU posted earnings of $94.7 million the fourth quarter, up from $82.6 million for the same quarter in 2006.

Earnings per share increased from $1.74 to $2.36 in 2007, up 36 percent.

MDU expects to earn $1.65 per share to $1.90 per share for 2008, which is below Wall Street's expectations of $1.93 per share.

"They're guessing we're more conservative on our estimate," MDU spokesman Rick Matteson said. "They have a great deal of confidence in us."

MDU shares rose 22 cents to $25.22 in morning trading Friday on the New York Stock Exchange.

MDU's construction services group reported a record $43.8 million in earnings last year, up from $27.8 million in 2006.

The company said its natural gas and oil production segment had $142.5 million in profit last year, down from $145.7 million in 2006. MDU said increases in production and oil prices were offset by such things as higher depreciation and lease operating expenses.

In construction materials and mining, MDU reported $77 million in earnings last year, down from a record $85.7 million in 2006. Hildestad said a decline in residential construction in some states accounted for the dip in profits last year.

The company's pipeline segment posted a record $31.5 million in earnings last year, compared with $30 million in 2006.

MDU Resources Group is the parent company of Montana-Dakota Utilities, which provides electricity to portions of North Dakota and four other states. The utility is part of MDU-Resources' electric and natural gas distribution group, which posted $31.7 million in earnings last year, up from $20.1 million in 2006.

The company said the increase was due partly to earnings from Seattle-based Cascade Natural Gas Corp., which MDU acquired in July, in a deal worth about $475 million.