Progressive Railroading

Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


View Current Digital Issue »


RAIL EMPLOYMENT & NOTICES



Rail News Home BNSF Railway

7/26/2005



Rail News: BNSF Railway

For BNSF, another quarterly revenue record


advertisement

BNSF Railway Co. remains on a quarterly earnings roll.

For second-quarter 2005, the Class I reported its 13th-consecutive quarter of year-over-year volume increases and the company’s sixth-consecutive quarter of double-digit freight revenue growth. The railroad also continued to reduce its operating ratio – “a trend we have been able to maintain for seven-consecutive quarters,” said BNSF Chairman, President and Chief Executive Officer Matthew Rose in a prepared statement.

For the quarter, BNSF had record freight revenue of $3.04 billion compared with $2.64 billion during the same period a year earlier. Revenue included $234 million in fuel charges -- a 260 percent hike compared with $65 million in second-quarter 2004.

Other revenue highlights included the railway’s Consumer Products division, which posted a 19 percent increase compared with the same period a year earlier, thanks in part to double-digit volume increases in the international, truckload, automotive and perishable sectors; Industrial Products, which, driven by strong demand in the building products, petroleum products and construction products sectors, had a 16 percent increased compared with second-quarter 2004’s total; and
Agricultural Products, which also posted a 16 percent increase compared with the same period last year due to strong corn, soybean and wheat export moves to the Pacific Rim.

For the quarter, BNSF posted operating expenses of $2.43 billion, 12 percent higher than the same 2004 period. The reasons: a 4 percent increase in gross ton-miles and 37 percent increase in fuel prices, even after factoring in a hedge benefit. Even so, BNSF’s operating ratio decreased four percentage points to 76.7 compared with second-quarter 2004’s 80.7.


Contact Progressive Railroading editorial staff.

More News from 7/26/2005