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To continue cutting costs — and deal with disappointing third-quarter earnings — Burlington Northern Santa Fe Oct. 23 announced plans to cut nearly 400 jobs.
The railroad's third-quarter net income of $225 million decreased 13.1 percent compared with $259 million in third-quarter 2000, mostly due to flat freight revenues.
"We are continuing to take steps to align our costs with the current business environment," said BNSF President and Chief Executive Officer Matthew Rose in a prepared statement, adding that those steps include a reduction in the railroad's non-union workforce.
Third-quarter freight revenues totaled $2.31 billion, about even compared with the same 2000 quarter. Operating expenses of $1.84 billion rose $69 million while operating income of $502 million dropped $69 million compared with a similar period last year.
BNSF's third-quarter operating ratio of 78.3 increased from 75.4, while the railroad's year-to-date ratio of 80.2 also rose from 77.0, compared with the same 2000 periods.
Meanwhile, CSX Corp. Oct. 23 reported $100 million in third-quarter earnings — a 69 percent jump from third-quarter 2000's $59 million — and $237 million in third-quarter operating income versus $190 million during the same 2000 period.
CSX Transportation's operating ratio measured 86.7 in the third quarter, improving 2.7 percent compared with 89.4 in third-quarter 2000.
However, freight revenues fell to $2.02 billion in the third quarter compared with $2.04 billion in 2000.
"Despite the national trauma following the events of Sept. 11, and weak demand in some sectors, we expect fourth-quarter earnings to be up significantly over last year," said CSX Chairman and CEO John Snow. "The nation will recover and the economy will come back — our goal is to grow revenues and improve margins substantially as times get better."