(The following article by Dan Piller was posted on the Fort Worth Star-Telegram website on October 24.)
FORT WORTH, Texas — Burlington Northern Santa Fe Corp. of Fort Worth reported record revenues and profits for the third quarter, with earnings up 22 percent and freight revenues up 19 percent.
Third-quarter net income totaled $488 million, or $1.33 per share, against $414 million in the 2005 third quarter, or $1.09 per share.
Traffic grew by 8 percent on the railroad system during the third quarter, prompting BNSF Chairman Matt Rose to note the economic “historically, railroad freight growth generally tracks gross domestic product growth of 2 to 3 percent. Here we are banging along at 7 to 8 percent growth increase. That’s unprecedented.”
All of the railroad’s shipping segments gained during the quarter, with coal and agricultural products leading the mix. Also, Rose said BNSF continues to enjoy 25 percent or more in volume increases in Asian imports through West Coast ports transloaded for rail shipment inland.
The raiload, which covers most of the western half of the United States, also benefitted from freight surcharges to cover higher fuel costs, which BNSF executives said now cover up to 90 percent of the railroad’s shipments.