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News ReleaseBurlington Northern Santa Fe Reports All-Time Record Quarterly Volumes, Revenues and EPSFORT WORTH, Texas, July 25, 2006:
Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported record quarterly earnings of $1.27 per diluted share (including a $0.04 benefit from lower income tax rates), a 32-percent increase over second-quarter 2005 earnings of $0.96 per diluted share. Second-quarter 2006 freight revenues increased $549 million, or 18 percent, to an all-time quarterly record of $3.59 billion compared with $3.04 billion in the prior year. Second-quarter revenues included a 21-percent increase in coal revenues, attributable to a 14-percent increase in units, and a 19-percent increase in consumer product revenues, reflecting an 8-percent growth in units. Revenue for the second quarter of 2006 included fuel surcharges of approximately $425 million compared with approximately $220 million in the second quarter of 2005. “BNSF continues to experience record demand for rail service across all of its business units,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “Our 9-percent increase in volume for the second quarter, led by all-time record quarterly coal loadings, enabled BNSF to record its 17th consecutive quarter of year-over-year volume increases. In the second quarter, BNSF exceeded its previous all-time quarterly record of coal loadings by over 5 percent.” Compared with the second quarter of 2005, BNSF experienced double-digit revenue increases in each of the Company’s four business groups. Coal revenues rose by $122 million, or 21 percent, to $713 million principally due to record loadings of Powder River Basin coal. Consumer Products revenues increased $238 million, or 19 percent, to $1.48 billion due to strong revenue increases in the international, truckload, less-than-truckload and parcel sectors. Industrial Products revenues increased $120 million, or 17 percent, to $838 million from double-digit revenue growth in all of the Industrial Products sectors. Agricultural Products revenues were up $69 million, or 14 percent, to $562 million, predominately from volume growth in corn. Operating expenses for the second quarter of 2006 were $2.84 billion compared with second-quarter 2005 operating expenses of $2.43 billion. The $410 million increase in operating expenses was principally driven by a $217 million increase in fuel expense primarily reflecting higher prices and a 9-percent increase in volume. Second-quarter operating income increased $153 million, or 22 percent, to $863 million compared with the second quarter of 2005. The Company’s operating ratio improved to 76.0 percent compared with 76.7 percent for the same quarter of the prior year. BNSF’s subsidiary, BNSF Railway Company, operates one of the largest railroad networks in North America, with approximately 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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