(Burlington Northern Santa Fe issued the following on July 23, 2009.)
FORT WORTH, Texas — Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $1.18 per diluted share, compared to second-quarter 2008 earnings of $1.00 per diluted share, which included a $0.31 per share charge related to environmental matters in Montana.
Highlights included:
• Quarterly earnings were $1.18 per diluted share.
• Compares to second-quarter 2008 earnings of $1.00 per diluted share, which included a $0.31 per share charge related to environmental matters in Montana.
• Freight revenues decreased $1.13 billion, or 26 percent, to $3.22 billion compared with the second quarter of 2008.
• Loads handled decreased 19 percent.
• Fuel surcharges declined by about $600 million.
• Operating expenses of $2.52 billion were $1.25 billion, or 33 percent, lower than second quarter 2008.
• Strong cost controls.
• Decreased unit volumes.
• Lower fuel prices decreased fuel expense by about $600 million.
“BNSF had another strong quarter of cost control in an extremely difficult economic environment,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “We are beginning to see BNSF’s volumes stabilize in our more economic sensitive businesses, and because of our continued focus on productivity combined with our long-term market opportunities, we are well positioned to benefit when the economy recovers.”
Second-quarter 2009 freight revenues decreased $1.13 billion, or 26 percent, to $3.22 billion compared with $4.35 billion in the prior year. The 26-percent decrease in revenues included a decrease in fuel surcharges of about $600 million. The remaining variance was due to lower unit volumes as a result of the economic downturn, partially offset by improved yields.
Coal revenues of $875 million were down $27 million, or 3 percent, on flat unit volumes. Agricultural Products decreased $210 million, or 25 percent, to $618 million on lower unit volumes primarily driven by reduced domestic loadings and international grain shipments, partially offset by improved yields. Industrial Products revenues fell $360 million, or 34 percent, to $686 million, which included a decline in unit volumes that was driven by lower demand for construction products and building products and was partially offset by improved yields. Consumer Products revenues declined $535 million, or 34 percent, to $1.04 billion, on lower international intermodal, domestic intermodal and automotive volumes due to economic conditions. Decreased fuel surcharges driven by lower fuel prices also negatively impacted revenues of each of the business units.
Operating expenses for the second quarter of 2009 declined $1.25 billion, or 33 percent, to $2.52 billion, compared with second-quarter 2008 operating expenses of $3.76 billion. The $1.25 billion reduction was primarily attributable to strong cost controls, decreased unit volumes and lower fuel prices.
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.