News Release

Burlington Northern Santa Fe Reports Fourth Quarter/Full Year 2000 Results

FORT WORTH, Texas, January 23, 2001:

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported fourth quarter 2000 earnings of $0.65 per share on a diluted basis, 6 percent lower than fourth quarter 1999 earnings of $0.69 per diluted share. "Reduced traffic volume from a slowing economy, early winter weather hampering some Midwestern rail operations and sharply higher fuel prices impacted BNSF's fourth quarter earnings," said Matthew K. Rose, President and Chief Executive Officer. "However, through cost containment, we increased free cash flow 66 percent to $431 million for full-year 2000 versus $260 million in 1999."

Revenues of $2.34 billion for the 2000 fourth quarter were $51 million lower than the prior-year period. Intermodal revenues increased $17 million, or 3 percent, to $692 million, principally reflecting higher international volumes and new truckload business. Carload revenues were $620 million, a decrease of $27 million, or 4 percent, from last year principally as a result of weak chemicals and forest products revenues. Coal revenues in the quarter continued to be softer than the prior year and declined $25 million, or 5 percent, to $528 million largely due to high customer stockpiles accumulated in 1999 as well as the impact of weather on our operations in December 2000. Agricultural Commodities revenues decreased $16 million, or 4 percent, to $347 million, primarily due to weak Pacific Northwest and Mexico exports for corn and wheat.

Operating expenses of $1.80 billion were $8 million higher than the 1999 fourth quarter. Fuel expense was $75 million higher than 1999, despite a 3 percent decrease in consumption. The average cost of diesel fuel per gallon, excluding hedge effects, increased 34 cents to $1.06. Overall expenses, excluding fuel, were down by $67 million, or 4 percent primarily a result of lower environmental and incentive compensation expenses. Operating income was $544 million for the fourth quarter 2000 compared with $603 million a year ago. The operating ratio increased to 76.5 percent for the fourth quarter 2000 compared with 74.5 percent in 1999.

Full-Year 2000 Results

BNSF's adjusted earnings per share for year ended December 31, 2000 was $2.45 on a diluted basis, a 1 percent increase from 1999 adjusted earnings of $2.43 per diluted share. Revenues for the year were $9.21 billion, an increase of $16 million. Adjusted operating expenses of $7.1 billion for 2000 increased by $102 million or 1 percent. Fuel expense was $232 million higher than 1999 due to sharply higher fuel prices, despite a 1 percent decrease in consumption. Adjusted operating income fell to $2.15 billion from $2.24 billion for 1999. BNSF's adjusted operating ratio increased slightly to 76.4 percent for 2000 compared with 75.4 percent a year earlier. Excluding the $232 million of increased fuel expenses, the operating ratio would have been 73.9 percent.

Common Stock Repurchases

During the fourth quarter, BNSF repurchased 6.1 million shares at an average price of $25.00 per share, bringing total repurchases under BNSF's 120 million share-repurchase program to 91.7 million shares at an average price of $25.48 per share since the program was announced in July 1997. During 2000, BNSF repurchased 64.6 million shares at an average price of $23.16 per share.

• Earnings of $0.65 per diluted share, compared with fourth quarter 1999 earnings of $0.69 per diluted share. 
• Fourth quarter operating income of $544 million -- $59 million lower than fourth quarter 1999 operating income of $603 million, principally due to a $75 million increase in fuel expense.
• Revenues of $2.34 billion, $51 million or 2 percent lower than fourth quarter 1999 revenues of $2.39 billion.
• Full-year adjusted earnings of $2.45 per diluted share -- an increase of 1 percent over full-year 1999 adjusted earnings of $2.43 per diluted share.
• Full-year adjusted operating income of $2.15 billion, a 4 percent decrease over 1999 adjusted operating income of $2.24 billion.
• Revenues of $9.21 billion, an increase of $16 million from full-year 1999 revenues of $9.19 billion.
• Free cash flow for the twelve months ended December 31, 2000 was $431 million, an increase of $171 million over the prior year, primarily driven by reduced capital spending.

Through The Burlington Northern and Santa Fe Railway Company, BNSF owns one of the largest railroad networks in the United States, with 33,500 route miles covering 28 states and two Canadian provinces. 

Consolidated financial statements

Statements made in this release concerning predictions or expectations of financial or operational performance, or concerning other future events or results, are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from that projected in those statements. Important factors that could cause such differences include those listed in the Management's Discussion and Analysis sections of BNSF's reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission.

BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000