FORT WORTH, Texas — Burlington Northern Santa Fe Corporation has reported all-time record quarterly earnings of $1.48 per diluted share, compared with third-quarter 2006 earnings of $1.33 per diluted share.
“BNSF achieved record quarterly revenues, operating income and earnings as a result of our diverse portfolio of businesses, strong cost control and improved yields. We were able to produce record earnings and quarterly operating income that exceeded $1 billion for the first time in our Company’s history despite continued economic softness in our Consumer and Industrial Products business groups,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer.
“Although we have concerns near-term about the economy, housing markets, high fuel prices and general consumer softness, we continue to be optimistic about the long-term future of BNSF,” Rose added.
Third-quarter 2007 freight revenues increased $133 million, or 4 percent, to an all-time quarterly record of $3.95 billion compared with $3.82 billion in the prior year. The 4-percent increase in revenue is primarily attributable to strong yields as well as volume growth in our Agricultural Products business.
Agricultural Products revenues were up $60 million, or 10 percent, to an all-time quarterly record of $682 million for the third-quarter of 2007. This increase was primarily due to an 8-percent unit volume increase, predominately from wheat, ethanol, fertilizer and bulk foods. Coal revenues rose by $101 million, or 14 percent, to $849 million.
These results include a net increase in revenues of $14 million, or approximately $0.02 per share, as a result of developments in several coal rate disputes. Coal unit volumes were relatively flat principally due to mine production issues. Industrial Products revenues increased by $11 million, or 1 percent, to $962 million on 2 percent lower unit volumes.
Continued strong demand for petroleum products was offset by a decline in building and construction products as a result of weakness in the housing market. Consumer Products revenues of $1.46 billion were $39 million, or 3 percent less than the third quarter of 2006. This was principally due to a decrease in unit volumes as a result of economic softness as well as reduced trans-pacific service of a large international customer.
Operating expenses for the third quarter of 2007 were up $50 million as a 4-percent reduction in compensation and benefits was more than offset by a 7-percent increase in the price of fuel.
— Special to Railfanning.org News Wire
