BNSF posts record earnings for 2021

BNSF Railway Co. logged $1.7 billion in net income in fourth-quarter 2021, a 13% increase from 2020's bottom line, the Class I announced yesterday.

Total revenue for the quarter rose 11% to $6.3 billion from $5.7 billion a year ago. Operating income climbed 12% to $2.4 billion, while operating expenses increased 10% to $3.85 billion.

The railroad recorded an operating ratio of 60% in the quarter versus 60.3% in fourth-quarter 2021.

For full-year 2021, BNSF reported net income of nearly $6 billion, up 16%; total revenue of $23.3 billion, up 12%; operating income of $8.8 billion, up 14%; and operating expenses of $14.5 billion, up 10% year over year.

BNSF's earnings were a record for the railroad, according to Berkshire Hathaway Inc. Chairman and CEO Warren Buffet's letter to shareholders in the company's 2021 annual report. Berkshire Hathaway owns BNSF.

"BNSF trains traveled 143 million miles last year and carried 535 million tons of cargo. Both accomplishments far exceed those of any other American carrier," Buffett wrote.

In 2021, BNSF's full-year volumes were 1% lower than the pre-pandemic volumes of 2019. The changes included a 3% decrease and 7% increase in unit volume for the fourth quarter and full-year 2021, respectively.

The full-year volume increase is primarily due to continued improvements from the 2020 effects of the COVID-19 pandemic, partially offset by the ongoing disruptions in the global supply chain, as well as the following:
• Consumer products volumes decreased 9% in the fourth quarter and increased 8% in full-year 2021 compared with the same periods in 2020.
• Industrial products volumes increased 6% and 5% in the fourth quarter and full year, respectively.
• Agricultural products volumes decreased 2% and increased 3% in the fourth quarter and full-year 2021.
• Coal volumes increased 9% in both the fourth quarter and full year.