2025 MOW Spending Report: Passenger-rail programs
Gardner steps down as Amtrak CEO
Guest comment: Oliver Wyman’s David Hunt
Women of Influence in Rail eBook
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry
Stay updated on news, articles and information for the rail industry
railPrime
RAIL EMPLOYMENT & NOTICES
Rail News Home
BNSF Railway
Rail News: BNSF Railway
Burlington Northern Santa Fe Corp. (BNSF) posted a lower profit in Q1 thanks to a previously announced environmental charge, but the Class I is still on a revenue roll.
Today, BNSF reported first-quarter earnings of $0.96 per diluted share, which included a $0.14 charge for additional environmental expenses and a technology system write-off, compared with first-quarter 2006 earnings of $1.09 per diluted share, which included a $0.04 per share line sale gain. Earlier this month, BNSF pre-announced the 14-cent charge, which is related clean-up sites in Washington state and California.
And despite flat volumes, BNSF posted a first-quarter record of $3.54 billion in freight revenue, a 5 percent increase compared with $3.37 billion during the same 2006 period.
“Improved yields from our well-balanced portfolio allowed us to achieve record first-quarter revenues despite flat volumes on a year-over-year basis,†said BNSF Chairman, President and Chief Executive Officer Matt Rose in a prepared statement. “In addition, we continue to drive operating expense efficiencies and improve velocity, delivering our best on-time performance since 2004.â€
Revenue also included $380 million in fuel surcharges, compared with $350 million in first-quarter 2006. The increase was driven primarily by increased participation in BNSF’s fuel surcharge program, BNSF says.
In other revenue categories:
* Coal revenue rose by $80 million, or 12 percent, to $760 million, as a result of higher rates from contract renewals, contractual price escalations, increased length of haul and fuel surcharges. Additionally, volumes increased by 2 percent as a result of strong customer demand.
* Consumer Products revenue increased $62 million, or 5 percent, to $1.31 billion primarily due to higher revenue in the international intermodal sector.
* Agricultural Products revenue were up $29 million, or 5 percent, to $626 million, predominately from volume growth in soybeans and fertilizer.
* Industrial Products revenue of $846 million remained relatively flat, as strong demand for petroleum and chemicals and plastic products were offset by weakness in the housing market.
BNSF posted operating income of $694 million, which included the environmental and technology charge of $81 million and fuel headwinds of $60 million principally resulting from a decline in fuel hedge positions. By contrast, the Class I recorded first-quarter 2006 operating income of $793 million, which included $22 million from a line sale gain.
Meanwhile, BNSF had operating expenses of $2.95 billion compared with first-quarter 2006 operating expenses of $2.67 billion. The $281 million increase was primarily due to the aforementioned environmental and technology charge, and higher fuel expenses due to a declining hedge position and higher fuel prices, BNSF says.
4/24/2007
Rail News: BNSF Railway
Improved yields help propel BNSF to record first-quarter revenue
advertisement
Burlington Northern Santa Fe Corp. (BNSF) posted a lower profit in Q1 thanks to a previously announced environmental charge, but the Class I is still on a revenue roll.
Today, BNSF reported first-quarter earnings of $0.96 per diluted share, which included a $0.14 charge for additional environmental expenses and a technology system write-off, compared with first-quarter 2006 earnings of $1.09 per diluted share, which included a $0.04 per share line sale gain. Earlier this month, BNSF pre-announced the 14-cent charge, which is related clean-up sites in Washington state and California.
And despite flat volumes, BNSF posted a first-quarter record of $3.54 billion in freight revenue, a 5 percent increase compared with $3.37 billion during the same 2006 period.
“Improved yields from our well-balanced portfolio allowed us to achieve record first-quarter revenues despite flat volumes on a year-over-year basis,†said BNSF Chairman, President and Chief Executive Officer Matt Rose in a prepared statement. “In addition, we continue to drive operating expense efficiencies and improve velocity, delivering our best on-time performance since 2004.â€
Revenue also included $380 million in fuel surcharges, compared with $350 million in first-quarter 2006. The increase was driven primarily by increased participation in BNSF’s fuel surcharge program, BNSF says.
In other revenue categories:
* Coal revenue rose by $80 million, or 12 percent, to $760 million, as a result of higher rates from contract renewals, contractual price escalations, increased length of haul and fuel surcharges. Additionally, volumes increased by 2 percent as a result of strong customer demand.
* Consumer Products revenue increased $62 million, or 5 percent, to $1.31 billion primarily due to higher revenue in the international intermodal sector.
* Agricultural Products revenue were up $29 million, or 5 percent, to $626 million, predominately from volume growth in soybeans and fertilizer.
* Industrial Products revenue of $846 million remained relatively flat, as strong demand for petroleum and chemicals and plastic products were offset by weakness in the housing market.
BNSF posted operating income of $694 million, which included the environmental and technology charge of $81 million and fuel headwinds of $60 million principally resulting from a decline in fuel hedge positions. By contrast, the Class I recorded first-quarter 2006 operating income of $793 million, which included $22 million from a line sale gain.
Meanwhile, BNSF had operating expenses of $2.95 billion compared with first-quarter 2006 operating expenses of $2.67 billion. The $281 million increase was primarily due to the aforementioned environmental and technology charge, and higher fuel expenses due to a declining hedge position and higher fuel prices, BNSF says.
