(Reuters circulated the following article on July 25.)
CHICAGO — Burlington Northern Santa Fe Corp., the nation’s second-largest railroad, on Tuesday said quarterly net profit rose 28 percent on strong growth in hauling coal and consumer products.
The Ft. Worth, Texas-based company reported second-quarter earnings of $470 million, or $1.27 a share, compared with $366 million, or 96 cents a share, a year earlier.
On average, Wall Street analysts had expected $1.22 per share, according to Reuters Estimates.
The company said freight revenue rose 18 percent to $3.59 billion, propelled by a 21 percent increase in revenue from hauling coal.
The revenue total includes fuel surcharges of $425 million, the company said, nearly double what it charged in the same quarter last year.
Like all major U.S. railroads, Burlington Northern has benefited over the past two years from hauling increased imports and soaring demand for coal for the nation’s power plants.
This has enabled railroads to raise rates significantly in 2005 and 2006, with some companies promising fresh hikes next year.