News Release

Burlington Northern Santa Fe Reports First Quarter 2002 Results

FORT WORTH, Texas, April 23, 2002 -- :

• First-quarter 2002 earnings of $0.45 per diluted share compared with first-quarter 2001 earnings after extraordinary item of $0.34 per diluted share. First-quarter 2001 earnings included $0.10 per diluted share of non-recurring losses related to non-rail investments and a $0.02 per diluted share extraordinary charge.
• Freight revenues were $2.14 billion, down 6 percent on 4 percent lower ton-miles.
• First-quarter operating income of $368 million is $51 million lower than first-quarter 2001.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported first-quarter 2002 earnings of $0.45 per diluted share, compared with first-quarter 2001 earnings after extraordinary charge of $0.34 per diluted share. As previously reported, first-quarter 2001 earnings included $0.10 per diluted share of non-recurring losses related to non-rail investments and a $0.02 per diluted share extraordinary charge.

“Earnings were impacted by softness in all major product sectors and the demand for coal was weakened because of mild winter weather," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "Record on-time performance and a large reduction in personal injuries were highlights of the first quarter of the year as BNSF continues to focus on operating cost containment and improving customer service.”

Freight revenues for the 2002 first quarter were $2.14 billion, down 6 percent compared with the same 2001 period. Consumer Products revenues decreased $28 million, or 3 percent, to $778 million reflecting decreased automotive shipments and lower levels of less-than-truckload (LTL) traffic, partially offset by new truckload business and higher international volumes for intermodal. Industrial Products revenues fell $26 million, or 5 percent, to $491 million because of production cutbacks affecting most sectors. Coal revenues declined $18 million, or 3 percent, to $508 million, primarily reflecting decreased demand and lower burn rates as a result of a mild winter. Agricultural Products revenues decreased $53 million, or 13 percent, to $361 million, primarily due to decreased demand for soybeans moving through the Pacific Northwest to China as well as decreased corn and wheat exports.

Operating expenses of $1.8 billion were $79 million or 4 percent lower than the same period in 2001. The decrease in first-quarter operating expenses primarily reflects reductions in fuel, compensation and benefits, and equipment rents.

Operating income was $368 million for the 2002 first quarter compared with $419 million a year ago. The operating ratio increased to 82.8 percent for the 2002 first quarter compared with 81.5 percent in the same 2001 period.

Common Stock Repurchases

During the 2002 first quarter, BNSF repurchased 2.8 million shares of its common stock at an average price of $28.62 per share. This brings total repurchases under BNSF’s 120 million share-repurchase program to 105.9 million shares as of March 31, 2002, at an average price of $25.81 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 33,000 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 date 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