BNSF reports all-time record quarterly volumes, revenues and EPS

By: | at 08:00 PM | Intermodal  

  • Quarterly earnings were $1.27 per diluted share, or 32% higher than second-quarter 2005 earnings per diluted share of $0.96.
  • Second-quarter freight revenues increased $549 million, or 18%, on 9% volume growth and an increase in fuel surcharge of approximately $205 million compared with the same 2005 period.
  • Operating income was a record $863 million, an increase of $153 million, or 22%, compared with second-quarter 2005.
  • Operating ratio improved by 70 basis points to 76.0% compared with the second quarter of 2005.

Burlington Northern Santa Fe Corporation (BNSF) reported record quarterly earnings of $1.27 per diluted share (including a $0.04 benefit from lower income tax rates), a 32% 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% increase in coal revenues, attributable to a 14% increase in units, and a 19% increase in consumer product revenues, reflecting an eight 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 nine 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 five 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%, to $713 million principally due to record loadings of Powder River Basin coal. Consumer Products revenues increased $238 million, or 19%, 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%, to $838 million from double-digit revenue growth in all of the Industrial Products sectors. Agricultural Products revenues were up $69 million, or 14%, 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 nine percent increase in volume.

Second-quarter operating income increased $153 million, or 22%, to $863 million compared with the second quarter of 2005. The Company’s operating ratio improved to 76.0% compared with 76.7% for the same quarter of the prior year.


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