BNSF reports 30% profit drop
Burlington Northern Santa Fe Corp. said last week it had third quarter profit of $488 million, about 30 percent less than the $695 million it earned in the same 2008 period.
Freight revenue for the quarter ending Sept. 30 decreased $1.28 billion to $3.49 billion compared with $4.77 billion in the prior year. The 27 percent decrease in revenues included a fall in fuel surcharges of $725 million.
The company said the remaining variance was due to 17 percent lower unit volumes as a result of the economic downturn, partially offset by improved yields.
The company said revenues were down in all major segments:
' Coal revenue was down 10 percent to $940 million “on lower unit volumes driven by soft demand due to economic conditions and mild summer weather, partially offset by a favorable coal rate case adjustment and improved yields.”
' Agricultural product revenue declined 21 percent to $715 million on lower unit volumes predominately driven by reduced domestic loadings and international grain shipments.
' Industrial products revenue was off 34 percent to $747 million “due primarily to lower unit volumes, driven by lower demand for construction and building products, partially offset by improved yields.”
' Consumer product revenue decreased 36 percent to $1.09 billion, “on lower international intermodal, domestic intermodal and automotive volumes due to economic conditions.”
The company noted revenue was lower in each business unit because of lower fuel surcharges.