(Bloomberg News circulated the following article on January 26.)
FORT WORTH, Texas — Burlington Northern Santa Fe Corp., the second-largest U.S. railroad, said fourth-quarter profit rose 54 percent as the company gained business from larger rival Union Pacific Corp.
Net income increased to $347 million, or 91 cents a share, from $226 million, or 61 cents, a year earlier, the company said.
The reported profit beat the 78-cent average estimate in a Thomson Financial analyst survey, and the shares rose 4.6 percent.
The railroad’s sales rose 20 percent to $2.98 billion, helped by rising Asian imports. BNSF benefited as shipping delays limited traffic growth at Union Pacific, where quarterly profit fell 76 percent. BNSF’s shipments rose 11 percent, while Union Pacific’s increased 1.1 percent.
“Burlington Northern is succeeding as Union Pacific is failing,” said analyst Donald Broughton at A.G. Edwards in St. Louis. “They have kept their assets productive and they have been able to respond to the large increase in demand.”
BNSF shares have gained 43 percent in the past 12 months.