(Reuters circulated the following article on January 27.)
MIAMI — Burlington Northern Santa Fe Corp., the second-largest U.S. railroad, reported on Tuesday a 12 percent rise in quarterly profit as cargo volumes picked up in an expanding American economy.
The Fort Worth, Texas, transport group said fourth-quarter profit was $226 million, or 61 cents a share. A year earlier, Burlington earned $202 million, or 54 cents a share.
Analysts had forecast that Burlington, which has lines in 28 states and two Canadian provinces, to earn 57 cents a share, according to Reuters Research, a unit of Reuters Group Plc. Forecasts among 13 analysts had ranged from 54 cents to 60 cents a share.
Freight revenue rose 8 percent, or $185 million, to $2.46 billion from $2.27 billion in 2002’s fourth quarter, the company said in a news release. Analysts had forecast revenues of about $2.425 billion.
“Our revenue growth was again driven by strong volumes in our Consumer Products, Industrial Products and Agricultural businesses,” CEO Matthew Rose said. “For 2004, we anticipate continued revenue growth as both the global and U.S. economies continue to expand.”
Fuel expense again increased at Burlington, as it has at other North American railroads, and added to an 8 percent rise in operating expenses. Higher volumes also lifted expenses, the company said.