News Release

BNSF Reports 30 Percent Increase in EPS on Record 11 Percent Revenue Growth

FORT WORTH, Texas, April 27, 2004:

• First-quarter 2004 earnings was $0.52 per share, or 30 percent higher, compared with first-quarter 2003 earnings of $0.40 per share, excluding a $0.10 per share favorable effect of a change in accounting principle.
• Freight revenues increased $246 million, or 11 percent, to $2.45 billion from the 2003 first quarter, primarily driven by an eight-percent increase in units handled.
• Operating income increased $64 million, or 19 percent, to $410 million compared with first-quarter 2003.

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported first-quarter 2004 earnings of $0.52 per share, a 30-percent increase over first-quarter 2003 earnings of $0.40 per share, before the favorable effect of an accounting change of $0.10 per share.

"We had record revenue growth in the first quarter which enabled BNSF to record its second consecutive quarterly double-digit increase in earnings per share. Increased unit volumes in each major business group of our balanced portfolio contributed to this very strong revenue growth this quarter" said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer.

Freight revenues for the first quarter increased $246 million, or 11 percent, to $2.45 billion compared with 2003 first-quarter revenues of $2.20 billion. Consumer Products experienced its best first quarter on record with revenues increasing $79 million, or 9 percent, to $927 million reflecting increased volumes in the international, truckload and perishables sectorsas well as an overall increase in revenue per unit. Agricultural Products revenues were up $80 million, or 22 percent, to a record $438 million, as a result of strong U.S. corn and wheat harvests coupled with increased export demand for grain. Industrial Products revenues rose $52 million, or 10 percent, to a record $563 million reflecting increased business in the construction products, building products, and petroleum products sectors. Coal revenues for the first quarter increased $35 million, or 7 percent, to $520 million driven primarily by two new long-term coal contracts.

Operating expenses of $2.08 billion were $194 million, or 10 percent, higher than the 2003 first quarter, principally driven by a nine-percent increase in gross ton miles handled and higher depreciation expense due to expired purchase accounting credits and ongoing capital expenditures.

For the first quarter of 2004, operating income rose $64 million, or 19 percent, to $410 million compared with the first quarter of 2003. BNSF’s operating ratio decreased to 83.3 percent compared with 84.3 percent for the same period in the prior year.

Common Stock Repurchases

During the first quarter of 2004, BNSF repurchased approximately 2.6 million shares of its common stock at an average price of $31.41 per share. This brings total repurchases under BNSF’s 150-million share-repurchase program to approximately 126 million shares as of March 31, 2004, at an average price of $26.16 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. The railway is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, transports the 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. BNSF is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

Financial information

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