BNSF sees massive profit hike
Burlington Northern Santa Fe Corp., parent company of BNSF Railway Co. said today that growing demand for rail transportation has seen its third quarter net income soar to $414 million from $2 million in the year earlier period.
“Demand for rail transportation continues to outpace the rest of the economy,” said Matthew K. Rose, BNSF chairman, president and chief executive officer.
Third quarter operating income rose 678 percent to $778 million, from $100 million last year. Total revenues improved 18.7 percent to $3.31 billion from $2.79 billion. Freight revenues increased 18 percent to a record $3.22 billion.
BNSF experienced revenue increases in all four of its business groups during the third quarter. Consumer products revenues increased 21 percent to $1,331 million, largely from strong volume increases across most of the business sectors. Industrial products revenues were up 17 percent to $743 million. Agricultural products revenues improved 25 percent to $522 million, due largely to strong exports through the Gulf and Pacific Northwest ports. Coal revenues rose 6 percent to $622 million.
BNSF’s fuel costs increased 50 percent to $499 million although fuel surcharges pulled in $296 million in the quarter, compared to $95 million in the same period last year.
BNSF said the latest results marked its 14th consecutive quarter of year-over-year volume increases.
For the year to date, BNSF posted a net income of $1.1 billion, up 148 percent from $444 million after nine months in 2004. Operating income more than doubled to $2.12 billion from $1.01 billion. BNSF’s revenues were up 18.4 percent to $9.43 billion from $7.96 billion.