(BNSF Railway issued the following on October 23.)
CHICAGO — Railroad company Burlington Northern Santa Fe Corp. posted better-than-expected quarterly profit on Tuesday as strong pricing offset lower freight volumes, sending its shares up 4 percent.
But the railroad warned that in the short term it is concerned about the impact on the economy of the housing slowdown, high fuel prices and slack consumer spending.
The Fort Worth, Texas-based company reported third-quarter net income of $530 million, or $1.48 a share, compared with $489 million, or $1.33 a share, a year earlier.
Analysts’ average earnings forecast was $1.37 a share, according to Reuters Estimates.
Like most major railroads, BNSF has managed to offset lower freight volumes this year with strong pricing.
“Although we have concerns near-term about the economy, housing markets, high fuel prices and general consumer softness, we continue to be optimistic about the long-term future of BNSF,” Chief Executive Matt Rose said in a statement.
The company reported revenue for the quarter of $4.07 billion, compared with $3.94 billion a year earlier. It said the increase was due primarily to volume growth in its agricultural products business.
In pre-market trading BNSF shares were up $3.50 at $86.50 from Monday’s close on the New York Stock Exchange at $83.00.