News Release

Burlington Northern Santa Fe Reports Fourth Quarter/Full Year 2009 Results

FORT WORTH, Texas, January 21, 2010:

• Quarterly earnings were $1.55 per diluted share, which included a tax benefit of $0.25 per share related to a fourth-quarter donation.
• Compared to fourth-quarter 2008 earnings of $1.78 per diluted share
• Quarterly freight revenues were $3.57 billion, which included a decrease in fuel surcharges of $388 million.
  • Compared to fourth-quarter 2008 freight revenues of $4.25 billion
  • Loads handled decreased 12 percent
• Quarterly operating expenses were $2.79 billion, which included a decrease of $138 million related to lower fuel prices.
  • Compared to fourth-quarter 2008 operating expenses of $3.26 billion
  • Strong cost controls
  • Decreased unit volumes
• Full-year 2009 earnings per diluted share were $5.01.
  • Compared to full-year 2008 earnings of $6.06 per diluted share

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $1.55 per diluted share, which included a tax benefit of $0.25 per share related to the fourth-quarter donation of a portion of a line segment located in Washington State. This compared to fourth-quarter 2008 earnings of $1.78 per diluted share, which included a fuel surcharge lag benefit of about $200 million.

“We have seen some improvement in volumes during the second half of 2009 and expect this gradual improvement to continue,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “BNSF will continue to position itself to meet demand consistent with the pace of the economic recovery. And as we look forward into 2010, we are preparing to become part of the Berkshire Hathaway family, pending shareholder approval in February.”

Fourth-quarter 2009 freight revenues decreased $675 million, or 16 percent, to $3.57 billion compared with $4.25 billion in the prior year. The 16-percent decrease in revenues included a decrease in fuel surcharges of $388 million primarily driven by the unfavorable change in the fuel surcharge lag effect. The remaining variance was due to unit volumes, which were 12 percent lower as a result of the economic downturn, partially offset by improved yields.

Coal revenues decreased $181 million, or 17 percent, to $886 million on lower unit volumes driven by soft demand primarily due to economic conditions, low seasonal burn and weather-related challenges, partially offset by approximately $30 million for contract settlements and adjustments with specific customers. Agricultural Products revenues of $822 million were down $16 million, or 2 percent. Improved unit volumes, primarily driven by strong soybean exports, and improved yields were more than offset by a decrease in fuel surcharges. Industrial Products revenues fell $197 million, or 21 percent, to $722 million, which included a decline in unit volumes driven primarily by lower demand for construction and building products, partially offset by improved yields. Consumer Products revenues declined $281 million, or 20 percent, to $1.14 billion, on lower volumes due to economic conditions, partially offset by improved yields. Lower fuel surcharges impacted revenues in each of the business units.

Operating expenses for the fourth quarter of 2009 were $2.79 billion, a 14-percent reduction compared with fourth-quarter 2008 operating expenses of $3.26 billion. The $471 million decrease in operating expenses was principally due to strong cost controls, decreased unit volumes and lower fuel prices.

Full-year 2009 operating revenues were $14.0 billion compared to $18.0 billion for 2008. The decrease in operating revenues included lower fuel surcharges of $2.0 billion. Operating expenses for 2009 declined $3.4 billion, or 24 percent, over the prior year to $10.8 billion. Approximately half of the $3.4 billion reduction was due to lower fuel prices. The remaining decrease was due to strong cost controls and lower unit volumes.

Subsequent Event

On January 11, 2010, BNSF transferred operations which completed the sale of a line segment in the State of Washington, which will result in a gain of $74 million, or $0.13 per diluted share in the first quarter of 2010.

Burlington Northern Santa Fe Corporation's subsidiary BNSF Railway Company operates one of the largest North American rail networks, with about 32,000 route miles in 28 states and two Canadian provinces. BNSF Railway Company is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, carries the components of many of the products we depend on daily, and hauls enough low-sulfur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway Company is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

BNSF will not be conducting a fourth quarter earnings conference call.

Click here for the Financial Information

BNSF Headquarters
BNSF Railway Company
2650 Lou Menk Dr. 2nd Floor
Fort Worth, TX 76131-2830
P.O. Box 961057
Fort Worth, TX 76161-0057
Phone: (817) 352-1000