(The following article by Katherine Yung was posted on the Dallas Morning News website on April 26.)
DALLAS, Texas — Boom times in the railroad industry continued to drive sales and profits up at Burlington Northern Santa Fe Corp., which reported Tuesday that net income had jumped 28 percent in the first quarter.
Fort Worth-based Burlington Northern Santa Fe saw its net income jump 28% in the first quarter as the railroad industry continues to show strength. BNSF’s shares fell 6.2 percent.
The nation’s second-largest freight railroad, based in Fort Worth, earned $410 million, or $1.09 a share, up from $321 million, or 83 cents, in the year-ago period.
The results included a gain of $22 million, or 4 cents, from the sale of a portion of a rail line and the effects of having 2.1 percent fewer outstanding shares.
Analysts surveyed by Thomson First Call had expected Burlington Northern to earn $1.04 a share.
Freight revenue rose 16.2 percent to a first-quarter record of $3.4 billion.
“We continue to see a lot more volume than we had planned for,” said Matthew Rose, Burlington Northern’s chairman and chief executive.
Unlike many other companies, mounting fuel costs aren’t causing a headache at Burlington Northern because its customers pay fuel surcharges.
Instead, the railroad’s biggest worry is the need to improve its lackluster speed and on-time performance to handle the surge in shipments.
Burlington Northern stock closed Tuesday at $81.49, down $5.35 a share or 6.2 percent amid profit taking by some investors.