UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 27, 2003
MDU Resources Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-3480 41-0423660
(State of other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
Schuchart Building
918 East Divide Avenue
P.O. Box 5650
Bismarck, North Dakota 58506-5650
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code (701) 222-7900
Item 5. Other Events.
Incorporated by reference is a press release issued by MDU
Resources Group, Inc. on January 27, 2003, attached as Exhibit 99.
As reported in the Company's September 30, 2002 quarterly
report on Form 10-Q, the Company had pending the matter of the
functional currency with respect to its subsidiary's 49 percent
owned Brazilian operations. At that time, Company management had
determined the functional currency for the 200-megawatt natural
gas fired electric generation project to be the U.S. dollar. The
Company's determination was based on the fact that the contract
revenues are largely indexed to the U.S. dollar and that the
majority of expected operation and maintenance expenses and
actual equipment purchases are in U.S. dollars. The auditor for
the project has now determined the functional currency to be the
Brazilian real.
As further indicated in the Company's third quarter report,
the Company reported earnings from its 49 percent owned Brazilian
operations in the amount of $4.0 million, largely attributable to
foreign currency gains on Brazilian real-denominated obligations.
As a result of now utilizing the Brazilian real as the functional
currency, instead of the U.S. dollar, the reported third quarter
2002 earnings from the Brazilian operations would have been
reduced by $1.2 million and the Company's reported earnings would
have been reduced by a like amount or $.01 per common share. For
the third quarter 2002, the foreign currency losses related to
the U.S. dollar denominated debt were largely offset by the gains
on the embedded derivative in the electric power capacity
contract. This embedded derivative derives its value from the
annual adjustment factor contained in the contract which largely
indexes the contract capacity payments to the U.S. dollar.
Company earnings as previously reported for the three and nine
months ended September 30, 2002 totaled $53,742,000 and
$101,939,000, respectively. Reported earnings per common share,
diluted, for these same periods totaled $.75 and $1.44,
respectively. Utilizing the Brazilian real as the functional
currency and giving consideration to the fair value of the
embedded derivative in the contract would have resulted in
earnings for the Company for the three and nine months ended
September 30, 2002 totaling $52,571,000 and $100,768,000,
respectively. Earnings per common share, diluted, for these same
periods would have been $.74 and $1.42, respectively.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit 99 - Press release issued January 27, 2003 regarding
earnings for 2002.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
MDU RESOURCES GROUP, INC.
Date January 29, 2003 BY /s/ Warren L. Robinson
Warren L. Robinson
Executive Vice President, Treasurer
and Chief Financial Officer
EXHIBIT INDEX
Exhibit Number Description of Exhibit
99 Press release issued January 27, 2003
regarding earnings for 2002.