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News ReleaseBurlington Northern Santa Fe Reports Record First-Quarter Revenues and EPSFORT WORTH, Texas, April 25, 2006:
Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported record first-quarter earnings of $1.09 per diluted share, a 31-percent increase over first-quarter 2005 earnings of $0.83 per diluted share. First-quarter 2006 freight revenues increased $470 million, or 16 percent, to a first-quarter record of $3.37 billion compared with $2.90 billion in the prior year. The 16-percent increase in revenue is attributable to growth in unit volumes, rates and fuel surcharges. Revenue for the first quarter of 2006 included fuel surcharges of approximately $350 million compared with approximately $170 million in the first quarter of 2005. "Demand for rail service continued to be very strong with growth spread across each of our four business groups," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "Overall unit volume increased 5 percent in the first quarter compared with the same 2005 period. This increase was led by intermodal unit growth of 6 percent and coal carload and tonnage growth of 5 percent. As a result, we achieved record first-quarter operating income of $792 million, while further improving our operating ratio." Compared with the first quarter of 2005, BNSF experienced double-digit revenue increases in each of the Company’s four business groups. Consumer Products revenues increased $190 million, or 17 percent, to $1,320 million, primarily due to strong revenue increases in the international and domestic intermodal sectors. Industrial Products revenues increased $125 million, or 19 percent, to $772 million primarily due to double-digit revenue growth in the building products, construction products and petroleum products sectors. Coal revenues rose by $82 million, or 14 percent, to $680 million due in part to record loadings of 67 million tons of coal. Agricultural Products revenues were up $73 million, or 14 percent, to $597 million, due to revenue strength in corn, wheat and ethanol. Operating expenses for the first quarter of 2006 were $2.67 billion compared with first-quarter 2005 operating expenses of $2.35 billion. The $323 million increase in operating expenses includes a $169 million increase in fuel expense primarily reflecting higher prices. The Company also completed the previously announced sale of a line segment to the state of New Mexico resulting in a $22 million gain, or $0.04 per share, which is reflected as a reduction in operating expenses. First-quarter operating income increased $158 million, or 25 percent, to $792 million compared with the first quarter of 2005. Continuing the trend in improving the Company’s operating ratio, BNSF’s quarterly operating ratio decreased to 76.5 percent from 78.1 percent for the same quarter of the prior year. In late February 2006, the Company settled $600 million in prepaid forward transactions entered into in December 2005 to purchase shares of the Company’s common stock. This transaction had no impact on shares outstanding at the end of 2005; however, upon settlement in late February 2006, it reduced the number of shares outstanding by approximately 8 million shares. BNSF’s subsidiary, BNSF Railway Company, operates one of the largest railroad networks in North America, with about 32,000 route miles in 28 states and two Canadian provinces. The railway is among the world’s top transporters of intermodal traffic, moves more grain than any other North American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur 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. Click here for the Financial Information BNSF Headquarters |
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