|
|
|
|
|
 |
News ReleaseBurlington Northern Santa Fe Reports Third-Quarter 2003 Results:
Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported third-quarter 2003 earnings of $0.55 per share compared with third-quarter 2002 earnings of $0.51 per share. "Strong volumes in international and truckload intermodal coupled with an increasing export demand for wheat and growing demand for paper, construction products and building products contributed to record third-quarter revenues," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "We saw improvements in pricing and volume despite the continued softness of the U.S. manufacturing sector," Rose pointed out. Freight revenues for the third quarter increased $83 million, or 4 percent, to a record $2.37 billion compared with 2002 third-quarter revenues of $2.28 billion. Third-quarter freight revenues included increased fuel surcharges of $22 million compared with the prior year. Consumer Products revenues increased $48 million, or 5 percent, to a record $929 million reflecting continued growth in the international, truckload and perishables sectors as well as growth in existing business. Industrial Products revenues rose $30 million, or 6 percent, to a record $554 million reflecting strong demand for paper, lumber, aggregates and clay. Agricultural Products revenues were up $29 million, or 9 percent, to $371 million, as a result of increased export demand for wheat and greater ethanol shipments from Midwest plants to California. Coal revenues decreased $24 million, or 5 percent, to $511 million as a result of less demand due to milder summer weather and flooding at mines in the Powder River Basin which limited loadings. Operating expenses of $1.97 billion were $76 million, or 4 percent, higher than the same period in 2002. Increases in operating expense were primarily driven by a $45 million, or 21 percent, increase in fuel expense compared with the third quarter of 2002. Operating income rose $11 million, or 3 percent, to $430 million for the third quarter of 2003 from $419 million for the third quarter of 2002. BNSF's operating ratio was 81.8 percent compared to 81.6 percent for the same period in the prior year. Common Stock Repurchases During the third quarter of 2003, BNSF repurchased approximately 2 million shares of its common stock at an average price of $27.93 per share. This brings total repurchases under BNSF's 150-million share-repurchase program to approximately 122 million shares as of September 30, 2003, at an average price of $26.01 per share since the program was announced in July 1997. BNSF's subsidiary, The Burlington Northern and Santa Fe Railway Company, operates one of the largest railroad networks in North America, with about 32,500 route miles covering 28 states and two Canadian provinces. BNSF is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the mineral components of many of the products we depend on daily, and hauls enough coal to generate about ten percent of the electricity produced in the United States Consolidated Financial Statements Statements made in this release concerning projections or expectations of financial or operational performance, or concerning other future events or objectives 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, commodity concentrations, the extent to which BNSF is successful in gaining new long-term relationships with customers or retaining existing ones, changes in fuel prices, changes in the securities and capital markets, and changes in labor costs and labor difficulties, including stoppages affecting either BNSF's operations or our customers' abilities to deliver goods to BNSF for shipment; legal and regulatory factors: developments and changes in laws and regulations and the ultimate outcome of shipper and rate claims subject to adjudication, environmental investigations or proceedings and other types of claims and litigation; and operating factors: technical difficulties, changes in operating conditions and costs, 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. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Any corrections or revisions may appear in the Company's public filings with the Securities and Exchange Commission (SEC), which are accessible at www.sec.gov or on the Company's website at www.bnsf.com, and which you are advised to consult. Investors are encouraged to read the Company's earnings release and investors' report together with its SEC filings for a more complete picture and better understanding of the Company and its financial disclosures. For more information on the company and its transportation solutions, visit the BNSF Web site at www.bnsf.com BNSF Headquarters |
|
|||||||
