(Reuters circulated the following article on October 25.)
BOSTON — Burlington Northern Santa Fe Corp., the second-largest U.S. railroad, on Tuesday posted a sharp rise in quarterly profit due to strong demand for coal and imports from Asia.
The railroad’s third-quarter net profit rose to $414 million, or $1.09 per share, versus $2 million or 1 cent per share in the year-ago period when it incurred a $288 million after-tax charge for asbestos and environmental liabilities.
The result came in above analysts’ estimates of $1.00 a share, according to Reuters Estimates. Revenue rose 19 percent to $3.32 billion versus expectations of $3.21 billion.
Burlington Northern’s extensive operations along the West Coast ports put the railroad in position to capitalize on a surge in imports, carrying goods from Asia to U.S. retailers and manufacturers.
Year to date, shares of Burlington Northern has risen 20 percent while the S&P Railroads Index has increased 11 percent in the same period.