News Release

Burlington Northern Santa Fe Reports First Quarter 2001 Results

FORT WORTH, Texas, April 24, 2001:

• Earnings of $0.36 per diluted share, before extraordinary charge, compared with first quarter 2000 earnings of $0.55 per diluted share. First quarter 2001 earnings include $40 million or $0.10 per diluted share of previously announced non-recurring losses related to non-rail investments.
• Freight revenues were $2.26 billion, up slightly on 4 percent higher ton-miles, despite continued softness in the U.S. economy.
• Fuel expenses were $46 million higher than 2000.
• Winter weather and higher other energy-related costs were estimated at $25 million more than 2000.
• First quarter operating income of $419 million is $91 million lower than first quarter 2000 operating income of $510 million.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported first quarter 2001 earnings of $0.36 per diluted share, before an extraordinary charge, compared with first quarter 2000 earnings of $0.55 per diluted share. First quarter 2001 earnings include $40 million or $0.10 per diluted share of previously announced non-recurring losses related to non-rail investments.

“BNSF’s well-balanced business portfolio allowed us to achieve a slight increase in revenue despite the continued softness of the U.S. economy,” said Matt Rose, BNSF President and Chief Executive Officer. “However, an additional $46 million in fuel expenses, more severe winter weather and higher electricity and other energy costs contributed to a 7 percent increase in expenses as compared with a year ago.”

Freight revenues for the 2001 first quarter were $2.26 billion, up slightly on 4 percent higher ton-miles compared with the same 2000 period. Agricultural Commodities revenues increased $36 million, or 11 percent, to $361 million, primarily due to increased demand for soybeans moving through the Pacific Northwest to China and increased northern spring wheat moving to the upper Midwest and eastern domestic markets. Consumer revenues increased $6 million, or 1 percent, to $807 million reflecting new truckload business and higher international volumes for intermodal, offset by decreased automotive shipments. Coal revenues declined $3 million, or 1 percent, to $526 million as a result of lower revenue per unit on certain contract renewals; this was partially offset by increased demand for western coal due to colder weather, tight eastern coal supplies and high natural gas prices. Industrial revenues fell $18 million or 3 percent, to $569 million because of production cutbacks affecting most sectors.

Operating expenses of $1.87 billion were $119 million higher than the 2000 first quarter. Expenses increased primarily from the impact of more severe winter weather conditions, higher electricity and other energy costs, increased compensation and benefit rates, and higher ton-miles. Fuel expense was $46 million higher than 2000 as the average cost of diesel fuel per gallon increased 14 cents.

Operating income was $419 million for the first quarter 2001 compared with $510 million a year ago. The operating ratio increased to 81.5 percent for the first quarter 2001 compared with 77.3 percent in 2000.

Common Stock Repurchases

During the first quarter, BNSF repurchased 2.2 million shares at an average price of $28.86 per share, bringing total repurchases under BNSF’s 120 million share-repurchase program to 93.9 million shares at an average price of $25.57 per share since the program was announced in July 1997.

Through The Burlington Northern and Santa Fe Railway Company, BNSF operates 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.

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