BNSF revenue, income dip on lower volumes in Q2

BNSF Railway Co. reported second-quarter 2023 net income plunged 24% to $1.3 billion and revenue declined 12% to $5.8 billion compared with the same period a year ago.

Operating income fell 24% to $1.8 billion, operating expenses decreased 6% to $4 billion and the operating ratio rose to 68.2% from 63.2% in Q2 2022, according to a financial performance summary posted on the railroad’s website.

BNSF attributed the revenue decrease primarily to lower volume. Average revenue per car/unit declined slightly, company officials said.

Following are Q2 performance summaries for the railroad's four main commodity groups:

• Consumer products volume decreased 16%, primarily due to weak West Coast imports, the loss of an intermodal customer and competition from lower spot rates in the trucking market that impacted domestic intermodal demand. The results were partially offset by an increase in automotive volume from higher vehicle production;

• Agricultural products volume declined 8% primarily due to lower grain exports, partially offset by higher volumes of domestic grains, renewable diesel and feedstocks;

• Industrial product volume dipped 3% as a result of lower demand for chemicals, plastics and lumber, as well as lower shipments from petroleum products caused by refinery outages; and

• Coal volume decreased 3% due to moderating demand as a result of lower natural gas prices and weather-related impacts.