BNSF 3RD-QUARTER INCOME DROPS 16%
Burlington Northern Santa Fe Corp., the Fort Worth, Texas-based railroad, said sharply higher fuel costs and a downturn in rail shipments resulted in a 16.3-percent drop in third-quarter net income, to $272 million.
Operating income fell 9.5 percent to $571 million, while operating expenses increased 2.0 percent to $1.74 billion. Fuel expenses was $61 million higher than the year-earlier period despite a 1-percent decrease in consumption. Revenue was down slightly, to $2.32 billion from $2.34 billion. Operating revenue rose 2.3 points to 75.3 percent.
“Earnings continue to be affected by sharply higher fuel prices and softness in the agricultural commodities and coal market,” said Robert D. Krebs, chairman and chief executive officer of BNSF. “These were partially offset by strong intermodal growth and tight expenditure controls.”
Intermodal revenue rose 5.4 percent, to $687 million, and automotive revenue rose 8.0 percent to $107 million. Agricultural commodities fell 16.6 percent to $317 million and coal declined 2.5 percent to $550 million for the quarter. Carload revenue was largely flat, at $652 million.
For the first nine months of 2000, net income fell 6.6 percent to $764 million, on revenue of $6.79 billion, up 1.1 percent.
Operating income fell 1.7 percent to $1.61 billion, while operating expenses rose 2.0 percent to $5.18 billion. Operating ratio rose to 76.3 percent, from 75.7 percent.