(Burlington Northern Santa Fe issued the following on April 29.)
FORT WORTH, Texas — Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported record first-quarter earnings of $1.30 per diluted share, compared with first-quarter 2007 earnings of $0.96 per diluted share, which included a $0.14 charge for additional environmental expenses and a technology system write-off.
Highlights included:
— Quarterly earnings were $1.30 per diluted share. This compares to first-quarter 2007 earnings of $0.96 per diluted share, which included a $0.14 charge for additional environmental expenses and a technology system write-off.
— Freight revenues increased $599 million, or 17 percent, with an increase in fuel surcharges of approximately $280 million compared with the same 2007 period.
— Operating income was $875 million, compared to first-quarter 2007 operating income of $694 million.
“BNSF achieved record first-quarter results, while demonstrating continued improvement in our velocity and service metrics,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “Although we continue to see economic softness within the Consumer Products business group and commodities related to housing, we are benefiting from our diverse franchise. Looking forward, we continue to be optimistic about the long-term prospects for BNSF and are poised to meet increased demand as the economy strengthens,” Rose added.
First-quarter 2008 freight revenues increased $599 million, or 17 percent, to $4.14 billion compared with $3.54 billion in the prior year. The 17-percent increase in revenue is primarily attributable to volume growth in the Agricultural Products business group, improved yields and increased fuel surcharges of approximately $280 million driven by higher fuel prices.
Agricultural Products revenues were up $240 million, or 38 percent, to $866 million, predominately due to strong unit volumes provided by growth in wheat, soybeans, corn and ethanol, coupled with improved yields. Coal revenues rose by $194 million, or 26 percent, to $954 million, as a result of strong unit volumes, and improved yields. Industrial Products revenues increased $93 million, or 11 percent, to $939 million due to strong demand for construction products and petroleum products, partially offset by weakness in the housing market. Consumer Products revenues reached $1.38 billion, an increase of $72 million, or 5 percent, compared with first quarter 2007. This increase was primarily related to improved yields. Each of the business units also benefited from increased fuel surcharges driven by higher fuel prices.
Operating expenses for the first quarter of 2008 were $3.39 billion compared with first-quarter 2007 operating expenses of $2.95 billion, which included an $81 million charge. The increase in operating expenses was primarily due to an increase in fuel expense of $357 million as a result of higher fuel prices on relatively flat fuel consumption.
Burlington Northern Santa Fe Corporation’s subsidiary BNSF Railway Company operates one of the largest North American rail networks, with about 32,000 route miles in 28 states and two Canadian provinces. BNSF Railway Company is among the world’s top transporters of intermodal traffic, moves more grain than any other American railroad, carries the components of many of the products we depend on daily, and hauls enough low-sulfur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway Company is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.