(Burlington Northern Santa Fe issued the following news release on October 21.)
FORT WORTH, Texas — Burlington Northern Santa Fe Corporation today reported third-quarter 2003 earnings of $0.55 per share compared with third-quarter 2002 earnings of $0.51 per share.
“Strong volumes in international and truckload intermodal coupled with an increasing export demand for wheat and growing demand for paper, construction products and building products contributed to record third-quarter revenues,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “We saw improvements in pricing and volume despite the continued softness of the U.S. manufacturing sector,” Rose pointed out.
Freight revenues for the third quarter increased $83 million, or 4 percent, to a record $2.37 billion compared with 2002 third-quarter revenues of $2.28 billion. Third-quarter freight revenues included increased fuel surcharges of $22 million compared with the prior year. Consumer Products revenues increased $48 million, or 5 percent, to a record $929 million reflecting continued growth in the international, truckload and perishables sectors as well as growth in existing business. Industrial Products revenues rose $30 million, or 6 percent, to a record $554 million reflecting strong demand for paper, lumber, aggregates and clay. Agricultural Products revenues were up $29 million, or 9 percent, to $371 million, as a result of increased export demand for wheat and greater ethanol shipments from Midwest plants to California. Coal revenues decreased $24 million, or 5 percent, to $511 million as a result of less demand due to milder summer weather and flooding at mines in the Powder River Basin which limited loadings.
Operating expenses of $1.97 billion were $76 million, or 4 percent, higher than the same period in 2002. Increases in operating expense were primarily driven by a $45 million, or 21 percent, increase in fuel expense compared with the third quarter of 2002.
Operating income rose $11 million, or 3 percent, to $430 million for the third quarter of 2003 from $419 million for the third quarter of 2002. BNSF’s operating ratio was 81.8 percent compared to 81.6 percent for the same period in the prior year.
Common Stock Repurchases
During the third quarter of 2003, BNSF repurchased approximately 2 million shares of its common stock at an average price of $27.93 per share. This brings total repurchases under BNSF’s 150-million share-repurchase program to approximately 122 million shares as of September 30, 2003, at an average price of $26.01 per share since the program was announced in July 1997.
BNSF’s subsidiary, The Burlington Northern and Santa Fe Railway Company, operates one of the largest railroad networks in North America, with about 32,500 route miles covering 28 states and two Canadian provinces. BNSF is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com . The railway is among the world’s top transporters of intermodal traffic, moves more grain than any other American railroad, transports the mineral components of many of the products we depend on daily, and hauls enough coal to generate about ten percent of the electricity produced in the United States.