News Release

Burlington Northern Santa Fe Reports Fourth Quarter/Full Year 2001 Results

FORT WORTH, Texas, January 22, 2002:

• Fourth-quarter 2001 earnings of $0.46 per diluted share include an $0.11 per diluted share after-tax charge for workforce reduction related costs. Without the charge, earnings were $0.57 per diluted share, compared with fourth-quarter 2000 earnings of $0.65 per diluted share.
• Freight revenues were $2.27 billion for the fourth-quarter 2001 on over 3 percent higher ton-miles, 2 percent lower than fourth-quarter 2000 revenues of $2.32 billion.
• Free cash flow for the twelve months ended December 31, 2001 was $443 million, an increase of 3 percent over the prior year.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported fourth-quarter 2001 earnings of $0.46 per diluted share, which includes includes a $42 million after-tax charge for workforce reduction related costs. Without the charge, fourth-quarter earnings per share is $0.57 per diluted share compared with fourth-quarter 2000 earnings of $0.65 per diluted share.

“Despite the U.S. recession, BNSF generated $443 million of free cash flow, a 3 percent improvement over last year. Additionally, we operated the railroad at the highest level of fourth-quarter on-time performance since the BNSF merger,” said Matthew K. Rose, President and Chief Executive Officer. “BNSF’s continued focus is on revenue quality, operating expense efficiencies and free cash flow while providing transportation services that consistently meet customers' expectations.”

Freight revenues for the 2001 fourth quarter were $2.27 billion, 2 percent lower on over 3 percent higher ton-miles compared with the same 2000 period. Agricultural Products revenues increased $20 million, or 5 percent, to $415 million, primarily due to increases in demand for soybeans, wheat and flour. Coal revenues increased $18 million, or 3 percent, to $546 million on 9 percent higher volumes as a result of increased demand for electricity and new business. Industrial Products revenues fell $13 million or 3 percent, to $492 million because of continued production cutbacks affecting most sectors. Consumer Products revenues decreased $68 million, or 8 percent, to $819 million, primarily reflecting decreases in automotive shipments as well as fewer domestic intermodal shipments resulting from the economic slowdown. However, BNSF had a 9 percent volume gain in its truckload business in the fourth quarter.

Operating expenses of $1.83 billion, excluding the charge, were up $34 million or slightly less than 2 percent on over 3 percent higher ton-miles. Reductions in fuel and equipment rents expenses generally offset increases in compensation and benefits and other cost categories.

Operating income was $472 million, excluding the charge, for fourth-quarter 2001 compared with $544 million a year ago.

Full-Year 2001 Results

BNSF’s earnings per share including unusual items for the year ended December 31, 2001 was $1.87 on a diluted basis compared with earnings of $2.36 per diluted share in the prior period.

Without unusual items, BNSF’s 2001 earnings per share was $2.08 on a diluted basis compared with earnings of $2.45 per diluted share for the same period last year. Freight revenues for the year were $9.09 billion, a decrease of less than 1 percent compared with 2000. Operating expenses of $7.39 billion for 2001 increased by $330 million or 5 percent on 2 percent higher ton-miles. Operating income fell to $1.79 billion from $2.15 billion for 2000.

Common Stock Repurchases

During the 2001 fourth quarter, BNSF repurchased 2.0 million shares at an average price of $26.96 per share. This brings total repurchases under BNSF’s 120 million share-repurchase program to 103.1 million shares as of December 31, 2001 at an average price of $25.74 per share since the program was announced in July 1997.

Through its subsidiary, The Burlington Northern and Santa Fe Railway Company, BNSF operates one of the largest railroad networks in the United States, with 33,000 route miles covering 28 states and two Canadian provinces.

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 and actual results may differ materially from that projected or implied in those statements. Important factors that could cause such differences include, but are not limited to, economic and industry conditions: material adverse changes in economic or industry conditions, both within the United States and globally, customer demand, effects of adverse economic conditions affecting shippers, adverse economic conditions in the industries and geographic areas that produce and consume freight, competition and consolidation within the transportation industry, changes in fuel prices, and changes in labor costs and labor difficulties including stoppages; legal and regulatory factors: developments and changes in laws and regulations and the ultimate outcome of shipper claims, environmental investigations or proceedings and other types of claims and litigation; and operating factors: technical difficulties, changes in operating conditions and costs, competition and commodity concentrations, the Company’s ability to achieve its operational and financial initiatives and to contain costs, as well as natural events such as severe weather, floods and earthquakes or other disruptions of the Company’s operating systems, structures, or equipment.

The Company cautions against placing undue reliance on forward-looking statements, which reflect its current beliefs and are based on information currently available to it as of the data a forward-looking statement is made. The company undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs.

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