(Reuters circulated the following on April 29.)
CHICAGO — Burlington Northern Santa Fe Corp (BNI.N: Quote, Profile, Research), the second-largest U.S. railroad, on Tuesday reported a higher-than-expected net profit as strong pricing offset lower freight volumes, particularly in sectors hurt by softness in the U.S. economy.
“BNSF is still managing to improve its pricing and its efficiency despite weakness in some areas of the economy,” said Don Hodges, president of Hodges Capital Management, which has around $1.1 billion in assets under management.
“These results are a tribute to how well they’re running their business,” he added. “They’re doing a good job.”
Hodges’ second-largest position is in BNSF stock.
Fort Worth, Texas-based BNSF reported first-quarter net income of $455 million, or $1.30 a share, up 30 percent from $349 million, or 96 cents a share, a year earlier.
Wall Street analysts, on average, expected earnings per share for the quarter of $1.23, according to Reuters Estimates.
Revenue in the quarter rose to $4.26 billion from $3.65 billion a year earlier. Analysts expected $4.10 billion.
Total carloads were down at 2.486 million from 2.507 million a year earlier.
Like the other major U.S. railroads, BNSF has posted robust profits in recent quarters despite slowing U.S. economic growth, thanks largely to strong pricing and improved network performance.
In an analysts presentation on its website BNSF said it expects second-quarter freight revenue growth in the “mid-teens” despite flat freight volumes, plus EPS growth in the “high teens.”
For the full year the railroad said it expects freight revenue growth in low double-digits and EPS approaching $6.00.