(The Associated Press circulated the following article on January 25.)
FORT WORTH, Texas — Railroad operator Burlington Northern Santa Fe Corp. on Tuesday said profits rose 54 percent in the fourth quarter, helped by rising demand for freight shipping. The results beat analysts’ estimates.
Net income rose to $347 million, or 91 cents per share, from $226 million, or 61 cents per share, a year earlier.
That easily beat the 78 cents per share forecast from analysts surveyed by Thomson First Call.
Revenue increased 20 percent to $2.98 billion, above the $2.86 billion expected by analysts.
Burlington Northern shares rose $2.04, or 4.6 percent, to close at $46.69 in Tuesday trading on the New York Stock Exchange, near their 52-weak best of $49.25.
The Fort Worth-based company said shipments of consumer goods rose 22 percent, shipments of agricultural products and coal each gained about 17 percent, and industrial products rose more than 16 percent.
The railroad said operating expenses rose 15 percent, mostly due to higher fuel prices and a 10 percent increase in miles times tons carried.
For all of 2004, profits fell 3 percent to $791 million, or $2.10 per share, from $816 million, or $2.19 per share, in 2003. The 2004 figure included a charge against earnings of $288 million, or 77 cents per share, to cover a changed estimate for asbestos and environmental liabilities.
Full-year revenue rose 16 percent to $10.95 billion from $9.41 billion in 2003.
Burlington Northern’s rail subsidiary operates 32,000 miles of track in 28 states and two Canadian provinces.