(Reuters circulated the following article on July 26.)
CHICAGO — Burlington Northern Santa Fe Corp. , the No. 2 U.S. railroad, reported a 47 percent increase in quarterly earnings on Tuesday as a boom in import-driven business overcame the cost of two big derailments.
Second-quarter earnings rose to $366 million, or 96 cents a share, from $249 million, or 67 cents a share, a year earlier. Analysts had expected 93 cents a share, according to Reuters Estimates.
Operating revenue rose almost 17 percent to $3.14 billion, topping the $3.07 billion analysts had expected.
With extensive operations at West Coast ports, Burlington Northern has been a major beneficiary of the surge in imported goods, carrying containers of goods from Asia on their way to U.S. retailers and manufacturers.
Nevertheless, the railroad hit a bump in the quarter following two major derailments in the Powder River Basin, the region in Wyoming and Montana where most U.S. coal is mined. Its partner on the Powder River line, Union Pacific Corp. (UNP.N), was hit hard by the derailments, though analysts said Burlington Northern was likely hurt less severely.
Freight revenue at Burlington Northern increased 15 percent in the second quarter to a quarterly record of $3.04 billion. The company collected fuel surcharges of $234 million, up from $65 million a year earlier.