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11/7/2023
BNSF Railway Co. yesterday reported third-quarter 2023 net income of $1.2 billion, down 15%, and total revenue of $5.8 billion, down 13%, compared with the same quarter last year.
The Class I posted Q3 operating income of $1.8 billion, down 14% year over year. BNSF's operating ratio was 68.4% for the quarter, up from 67.7% a year ago.
The company attributed the revenue decrease to a 5% decline in cargo. Average revenue per car/unit fell 7% due to lower rates per car/unit and lower fuel surcharge revenue, partially offset by positive business mix, BNSF officials said in a Q3 financial performance summary.
Revenue changes in Q3 also stemmed from a 7% decrease in consumer products, a 3% drop in agricultural products, a 1% dip in industrial products and a 6% decline in coal volume.
Operating expenses fell 12% to $4 billion in the quarter due in part to decreases in fuel expenses (32%), compensation and benefits (6%), materials and other expenses (1%) and purchased services (8%).