BNSF sees net profit drop, revenues increase
Burlington Northern Santa Fe Corp. said its second quarter net profit was down 8 percent to $433 million from the same period the prior year.
Revenue improved 4 percent to $3.84 billion over the second quarter of 2006. The company said the increase in revenue is primarily attributable to improved yields.
Domestic intermodal revenue was down 4 percent to $610 million, while international intermodal revenue improved 2.2 percent to $663 million, the company said. Automobile revenue was up 5.8 percent to $127 million. Coal revenue rose 9 percent to $776 million, while coal unit volumes were relatively flat principally due to mine production and weather-related issues. Industrial products revenue increased 4 percent to $950 million on flat unit volumes and improved yields.
Continued strong demand for petroleum products, chemicals and plastic products was offset by a decline in building and construction products as a result of weakness in the housing market BNSF said.
Agricultural products revenue increased 9 percent to $610 million, predominately from revenue growth in ethanol, fertilizer, soybeans and bulk foods.
Consumer products revenue was relatively flat, at $1.40 billion on a 7-percent reduction in unit volumes, the company said.