BNSF CUTS EARNINGS ESTIMATES DUE TO MIDWEST FLOODING
Burlington Northern Santa Fe told financial analysts and investors Thursday that second-quarter operating income will be reduced by $30 million, or 5 cents a share, due to flooding in the upper Midwest.
Flooding since mid-April has caused BSNF's main lines between Chicago and Minneapolis-St. Paul and in the St. Louis area to either disrupt service or operate at significantly reduced speeds during the past six weeks. The disruptions, along with steadily rising fuel costs, have led to increased operating expenses and reduced revenues.
Fort Worth, Texas-based BNSF estimates that fuel costs will be about 10 percent above the $219 million for the second quarter of 2000.