BNSF posts lower net, operating income in Q1

BNSF Railway Co. reported first-quarter 2023 revenue rose 1% to $6 billion, but net income fell 9% to $1.24 billion compared with financial results in the same quarter in 2022, the Class I announced today.

The railroad posted $1.9 billion in operating income during the quarter, a 9% decrease from $2 billion a year ago. BNSF logged an operating ratio of 68.4% in the quarter, up from 64.6% a year ago, according to a financial summary posted on the company’s website.

BNSF attributed the revenue increase primarily to a 14% increase in average revenue per car/unit. That increase resulted from higher fuel surcharge revenue driven by higher fuel prices along with increased rates per car, partially offset by a 10% decrease in unit volume.

BNSF reported revenue changes also occurred because:
• consumer products volume fell 16% primarily due to lower intermodal shipments resulting from a decrease in West Coast imports and the loss of an intermodal customer. That change was offset partially by an increase in automotive volume from higher vehicle production;
• agricultural products volume decreased 2% due to lower grain exports, partially offset by higher volumes of domestic grains, renewable diesel and feedstocks;
• industrial products volume declined 4% primarily because of lower demand for chemicals, plastics, lumber and paper shipments; and
• coal volume decreased 4% due to weather-related impacts, as well as moderated demand caused by lower natural gas prices.