News Release

Burlington Northern Santa Fe ReportsSecond Quarter 2001 Results

FORT WORTH, Texas, July 24, 2001:

Earnings were $0.50 per diluted share compared with second quarter 2000 earnings of $0.53 per diluted share.

• Freight revenues were $2.24 billion, even with last year on 2 percent higher ton-miles.
• Flooding conditions in the upper Midwest reduced operating income by approximately $30 million.
• Fuel expenses were $27 million higher than 2000.
• Second quarter operating income of $428 million is $55 million lower than second quarter 2000.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported second quarter 2001 earnings of $0.50 per diluted share, compared with second quarter 2000 earnings of $0.53 per diluted share.

Freight revenues for the 2001 second quarter were $2.24 billion, even with last year on 2 percent higher ton-miles compared with the same 2000 period. Agricultural Commodities revenues increased $13 million, or 5 percent, to $278 million, primarily due to an increased demand for corn, milo and meal, partially offset by a decline in wheat exports. Coal revenues increased $7 million, or 1 percent, to $532 million, on 8 percent higher volume as a result of increased demand for electricity, tight Eastern coal supplies and high natural gas prices. These volume increases were offset by lower revenue per unit on certain contract renewals. Industrial products revenues fell $7 million or 1 percent, to $587 million because of continued production cutbacks affecting most sectors. Consumer products revenues decreased $9 million, or 1 percent,to $844 million reflecting decreases in automotive and domestic intermodal shipments resulting from the current economic slowdown, offset by double-digit growth in the truckload business and increased international revenue.

Operating expenses of $1.84 billion were $65 million higher than the 2000 second quarter. Fuel expense was $27 million higher than 2000 as the average cost of diesel fuel per gallon increased 7 cents. Expenses other than fuel were higher primarily due to flooding conditions in the upper Midwest, higher wages and increased health and welfare costs.

Operating income was $428 million for the second quarter 2001 compared with $483 million a year ago. The operating ratio increased to 80.9 percent for the second quarter 2001 compared with 78.4 percent in 2000.

Common Stock Repurchases

During the second quarter, BNSF repurchased 3.1 million shares at an average price of $29.54 per share. This brings total repurchases under BNSF’s 120 million share-repurchase program to 97.0 million shares as of June 30, 2001 at an average price of $25.69 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