(Source: MARKETWIRE)
Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI)
--
-- Quarterly earnings were $1.42 per diluted share, which included a $0.06
per share impact related to a favorable coal rate case adjustment.
-- Compared to third-quarter 2008 earnings of $1.99 per diluted share.
-- Quarterly freight revenues were $3.49 billion, which included a
decrease in fuel surcharges of $725 million.
-- Compared to third-quarter 2008 freight revenues of $4.77 billion.
-- Loads handled decreased 17 percent.
-- Quarterly operating expenses were $2.69 billion, which included a
decrease of about $550 million related to lower fuel prices.
-- Compared to third-quarter 2008 operating expenses of $3.70 billion.
-- Strong cost controls.
-- Decreased unit volumes.
Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today
reported quarterly earnings of $1.42 per diluted share, which included
a $0.06 per share impact related to a favorable coal rate case
adjustment. This compared to third-quarter 2008 earnings of $1.99 per
diluted share.
"During the recession, BNSF has demonstrated significant operating
leverage through ongoing dedication to controlling costs and
productivity improvements," said Matthew K. Rose, BNSF Chairman,
President and Chief Executive Officer. "The combination of our
significant operating leverage and long-term market opportunities
places BNSF in a strong position when the economy recovers."
Third-quarter 2009 freight revenues decreased $1.28 billion, or 27
percent, to $3.49 billion compared with $4.77 billion in the prior
year. The 27-percent decrease in revenues included a decrease in fuel
surcharges of $725 million. The remaining variance was due to 17
percent lower unit volumes as a result of the economic downturn,
partially offset by improved yields.
Coal revenues were down $107 million, or 10 percent, to $940 million
on lower unit volumes driven by soft demand due to economic conditions
and mild summer weather, partially offset by a favorable coal rate
case adjustment and improved yields. Agricultural Products revenues
declined $194 million, or 21 percent, to $715 million on lower unit
volumes predominately driven by reduced domestic loadings and
international grain shipments. Industrial Products revenues of $747
million were $377 million, or 34 percent lower than the third quarter
of 2008, due primarily to lower unit volumes, driven by lower demand
for construction and building products, partially offset by improved
yields. Consumer Products revenues decreased $599 million, or 36
percent, to $1.09 billion, on lower international intermodal,
domestic intermodal and automotive volumes due to economic
conditions. Revenue was also impacted in each of the business units
because of lower fuel surcharges.
Operating expenses for the third quarter of 2009 declined $1.01
billion, or 27 percent, to $2.69 billion, compared with third-quarter
2008 operating expenses of $3.70 billion. About half of the $1.01
billion reduction was due to lower fuel prices, with the remainder
due to strong cost controls and decreased unit volumes.
Burlington Northern Santa Fe Corporation's subsidiary BNSF Railway
Company operates one of the largest North American rail networks, with
about 32,000 route miles in 28 states and two Canadian provinces.
BNSF Railway Company is among the world's top transporters of
intermodal traffic, moves more grain than any other American
railroad, carries the components of many of the products we depend on
daily, and hauls enough low-sulfur coal to generate about ten percent
of the electricity produced in the United States. BNSF Railway
Company is an industry leader in Web-enabling a variety of customer
transactions at www.bnsf.com.
Burlington Northern Santa Fe Corporation will present additional
information on its third quarter earnings in a webcast at 4:30 p.m.
Eastern Time October 22, 2009.
Financial information follows:
Burlington Northern Santa Fe Corporation
Consolidated Income Information*
(Dollars in millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Operating revenues
Freight revenues (a) $ 3,489 $ 4,766 $ 10,018 $ 13,258
Other revenues 106 140 317 387
-------- -------- -------- --------
Total operating revenues 3,595 4,906 10,335 13,645
-------- -------- -------- --------
Operating expenses
Compensation and benefits 872 1,013 2,564 2,947
Fuel 606 1,349 1,729 3,685
Purchased services 453 537 1,396 1,600
Depreciation and amortization 386 349 1,135 1,039
Equipment rents 194 229 591 682
Materials and other (b) 183 222 553 896
-------- -------- -------- --------
Total operating expenses 2,694 3,699 7,968 10,849
-------- -------- -------- --------
Operating income 901 1,207 2,367 2,796
Interest expense (c) 127 122 462 396
Other expense, net 1 6 5 11
-------- -------- -------- --------
Income before income taxes 773 1,079 1,900 2,389
Income tax expense 285 384 715 889
-------- -------- -------- --------
Net income $ 488 $ 695 $ 1,185 $ 1,500
======== ======== ======== ========
Diluted earnings per share $ 1.42 $ 1.99 $ 3.45 $ 4.28
======== ======== ======== ========
Operating ratio (d) 74.2% 74.7% 76.4% 78.9%
======== ======== ======== ========
* Certain comparative prior period amounts have been adjusted to conform
to the current period presentation.
(a) Third quarter 2009 includes a $30 million favorable adjustment to the
charge taken in the first quarter 2009 related to an unfavorable coal
rate case decision. The first nine months of 2009 includes a $66
million charge related to the unfavorable coal rate case decision.
(b) Second quarter 2008 includes a $175 million increase in expense
related to environmental matters in Montana.
(c) The first nine months of 2009 includes a net $32 million loss on
interest rate hedges and $8 million related to an unfavorable coal
rate case decision.
(d) Calculated as total operating expenses less other revenues divided by
freight revenues.
Burlington Northern Santa Fe Corporation
Consolidated Balance Sheet Information
(Dollars in millions, except per share amounts)
September 30, December 31,
2009 2008
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 1,161 $ 633
Accounts receivable, net 853 847
Materials and supplies 523 525
Current portion of deferred income taxes 454 442
Other current assets 286 218
------------ ------------
Total current assets 3,277 2,665
Property and equipment, net 32,135 30,847
Other assets 3,141 2,891
------------ ------------
Total assets $ 38,553 $ 36,403
============ ============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and other current liabilities $ 2,848 $ 3,190
Long-term debt due within one year 323 456
------------ ------------
Total current liabilities 3,171 3,646
Long-term debt 10,062 9,099
Deferred income taxes 9,235 8,590
Pension and retiree health and welfare
liability 1,020 1,047
Casualty and environmental liabilities 963 959
Employee separation costs 55 57
Other liabilities 1,792 1,874
------------ ------------
Total liabilities 26,298 25,272
------------ ------------
Stockholders' equity:
Common stock and additional paid-in capital 7,726 7,636
Retained earnings 13,541 12,764
Treasury stock and other (9,012) (9,269)
------------ ------------
Total stockholders' equity 12,255 11,131
------------ ------------
Total liabilities and stockholders' equity $ 38,553 $ 36,403
============ ============
Book value per share $ 36.00 $ 32.82
============ ============
Common shares outstanding (in millions) 340.4 339.2
============ ============
Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information*
(in millions)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Operating activities
Net income $ 488 $ 695 $ 1,185 $ 1,500
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 386 349 1,135 1,039
Deferred income taxes 200 116 458 248
Long-term casualty and
environmental liabilities, net (1) (10) (31) 181
Other, net 1 6 16 39
Changes in accounts receivable
sales program - 278 (50) 278
Other changes in working capital 42 213 (75) 18
-------- -------- -------- --------
Net cash provided by operating
activities 1,116 1,647 2,638 3,303
-------- -------- -------- --------
Investing activities
Capital expenditures excluding
equipment (587) (670) (1,669) (1,704)
Acquisition of equipment (159) (238) (615) (676)
Proceeds from sale of equipment
financed - - 368 190
Construction costs for facility
financing obligation (5) (21) (36) (38)
Other, net (71) (43) (167) (153)
-------- -------- -------- --------
Net cash used for investing
activities (822) (972) (2,119) (2,381)
-------- -------- -------- --------
Financing activities
Net borrowings (payments) 507 (370) 352 215
Dividends paid (136) (111) (409) (334)
Purchase of BNSF common stock (3) (236) (15) (878)
Proceeds from stock options
exercised 14 8 26 87
Proceeds from facility financing
obligation - 21 51 50
Other, net 1 8 4 84
-------- -------- -------- --------
Net cash provided by (used for)
financing activities 383 (680) 9 (776)
-------- -------- -------- --------
Increase (decrease) in cash and
cash equivalents 677 (5) 528 146
Cash and cash equivalents:
Beginning of period 484 481 633 330
-------- -------- -------- --------
End of period $ 1,161 $ 476 $ 1,161 $ 476
======== ======== ======== ========
* Certain comparative prior period amounts have been adjusted to conform to
the current period presentation.
Burlington Northern Santa Fe Corporation
Operating Statistics*
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenue Statistics
Cars / units (in thousands) 2,137 2,590 6,306 7,585
Average revenue per car /
unit (a) $ 1,619 $ 1,840 $ 1,599 $ 1,748
Average length of haul (miles) 1,096 1,081 1,102 1,088
Revenue ton miles (in millions) 150,675 170,134 443,526 502,443
Freight revenue / thousand
GTM (a) $ 13.88 $ 16.64 $ 13.73 $ 15.63
Freight revenue / thousand
RTM (a) $ 22.96 $ 28.01 $ 22.74 $ 26.39
Operating / Productivity Statistics
Operating Expense
Gross ton miles (in millions) 249,260 286,486 734,644 848,364
Operating expense / thousand
GTM (b) $ 10.81 $ 12.91 $ 10.85 $ 12.79
Thousand GTM / average employee 6,672 6,970 19,411 20,698
Compensation
Average employees 37,359 41,103 37,847 40,987
Compensation and benefits /
average employee $ 23,326 $ 24,646 $ 67,728 $ 71,893
Compensation and benefits /
thousand GTM $ 3.49 $ 3.54 $ 3.49 $ 3.47
Fuel (c)
GTM / gallon of fuel 860 821 816 794
Gallons of fuel used (in millions) 290 349 900 1,068
Average price per gallon of fuel
(d) $ 1.99 $ 3.72 $ 1.83 $ 3.33
Velocity
Locomotive miles per day 312.1 294.7 306.9 298.0
Car miles per day 229.2 205.5 229.6 203.3
* Certain comparative prior period amounts have been adjusted to conform to
the current period presentation
(a) Coal revenues on a GAAP basis were $940 million and $2,678 million for
the three and nine month periods ended September 30, 2009,
respectively. However, for comparative purposes the table above
excludes (from coal revenues and from the computation of amounts
derived therefrom) a $30 million favorable and $66 million unfavorable
impact related to a coal rate case decision for the three and nine
month periods ended September 30, 2009, respectively.
(b) Second quarter 2008 includes a $175 million increase in expense related
to environmental matters in Montana.
(c) Fuel statistics are based on locomotive diesel fuel.
(d) Includes handling, taxes and hedge effect.
Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity
Three Months Ended Nine Months Ended
Revenues (in September 30, September 30,
millions) ----------------- Percent ----------------- Percent
2009 2008 Change 2009 2008 Change
-------- -------- ------- -------- -------- -------
Domestic
Intermodal $ 526 $ 783 (32.8)% $ 1,553 $ 2,149 (27.7)%
International
Intermodal 477 776 (38.5) 1,383 2,095 (34.0)
Automotive 84 127 (33.9) 240 399 (39.8)
-------- -------- ------- -------- -------- -------
Total Consumer
Products 1,087 1,686 (35.5) 3,176 4,643 (31.6)
Coal (a) 910 1,047 (13.1) 2,744 2,903 (5.5)
Industrial Products 747 1,124 (33.5) 2,152 3,109 (30.8)
Agricultural
Products 715 909 (21.3) 2,012 2,603 (22.7)
-------- -------- ------- -------- -------- -------
Total freight
revenue 3,459 4,766 (27.4) 10,084 13,258 (23.9)
Other revenue 106 140 (24.3) 317 387 (18.1)
-------- -------- ------- -------- -------- -------
Total revenues $ 3,565 $ 4,906 (27.3)% $ 10,401 $ 13,645 (23.8)%
======== ======== ======= ======== ======== =======
Cars/units (in
thousands)
Domestic
Intermodal 463 555 (16.6)% 1,381 1,598 (13.6)%
International
Intermodal 490 667 (26.5) 1,461 1,943 (24.8)
Automotive 25 32 (21.9) 70 114 (38.6)
-------- -------- ------- -------- -------- -------
Total Consumer
Products 978 1,254 (22.0) 2,912 3,655 (20.3)
Coal 604 645 (6.4) 1,820 1,868 (2.6)
Industrial Products 308 420 (26.7) 888 1,245 (28.7)
Agricultural
Products 247 271 (8.9) 686 817 (16.0)
-------- -------- ------- -------- -------- -------
Total cars/units 2,137 2,590 (17.5)% 6,306 7,585 (16.9)%
======== ======== ======= ======== ======== =======
Average revenue per
car/unit
Domestic
Intermodal $ 1,136 $ 1,411 (19.5)% $ 1,125 $ 1,345 (16.4)%
International
Intermodal 973 1,163 (16.3) 947 1,078 (12.2)
Automotive 3,360 3,969 (15.3) 3,429 3,500 (2.0)
-------- -------- ------- -------- -------- -------
Total Consumer
Products 1,111 1,344 (17.3) 1,091 1,270 (14.1)
Coal (a) 1,507 1,623 (7.1) 1,508 1,554 (3.0)
Industrial Products 2,425 2,676 (9.4) 2,423 2,497 (3.0)
Agricultural
Products 2,895 3,354 (13.7) 2,933 3,186 (7.9)
-------- -------- ------- -------- -------- -------
Average revenue per
car/unit $ 1,619 $ 1,840 (12.0)% $ 1,599 $ 1,748 (8.5)%
======== ======== ======= ======== ======== =======
Revenue ton miles
(in millions)
Domestic
Intermodal 12,154 14,249 (14.7)% 36,146 40,951 (11.7)%
International
Intermodal 15,165 19,556 (22.5) 44,824 58,194 (23.0)
Automotive 960 1,231 (22.0) 2,693 4,236 (36.4)
-------- -------- ------- -------- -------- -------
Total Consumer
Products 28,279 35,036 (19.3) 83,663 103,381 (19.1)
Coal 71,253 75,001 (5.0) 213,973 215,570 (0.7)
Industrial Products 22,952 29,557 (22.3) 65,313 88,056 (25.8)
Agricultural
Products 28,191 30,540 (7.7) 80,577 95,436 (15.6)
-------- -------- ------- -------- -------- -------
Total revenue ton
miles 150,675 170,134 (11.4)% 443,526 502,443 (11.7)%
======== ======== ======= ======== ======== =======
Freight revenue per
thousand ton miles
Domestic
Intermodal $ 43.28 $ 54.95 (21.2)% $ 42.96 $ 52.48 (18.1)%
International
Intermodal 31.45 39.68 (20.7) 30.85 36.00 (14.3)
Automotive 87.50 103.17 (15.2) 89.12 94.19 (5.4)
-------- -------- ------- -------- -------- -------
Total Consumer
Products 38.44 48.12 (20.1) 37.96 44.91 (15.5)
Coal (a) 12.77 13.96 (8.5) 12.82 13.47 (4.8)
Industrial Products 32.55 38.03 (14.4) 32.95 35.31 (6.7)
Agricultural
Products 25.36 29.76 (14.8) 24.97 27.27 (8.4)
-------- -------- ------- -------- -------- -------
Freight revenue per
thousand ton
miles $ 22.96 $ 28.01 (18.0)% $ 22.74 $ 26.39 (13.8)%
======== ======== ======= ======== ======== =======
(a) Coal revenues on a GAAP basis were $940 million and $2,678 million for
the three and nine month periods ended September 30, 2009,
respectively. For comparative purposes, the table above excludes the
impact related to the coal rate decision (see note (a) on prior table
"Operating Statistics").
Burlington Northern Santa Fe Corporation
Capital Expenditures*
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Capital expenditures excluding
equipment (in millions)
Engineering
Rail $ 134 $ 131 $ 382 $ 340
Ties 124 111 355 289
Surfacing 82 76 202 185
Other 154 177 419 406
--------- --------- --------- ---------
Total engineering 494 495 1,358 1,220
Mechanical 24 47 86 116
Other 30 35 88 87
--------- --------- --------- ---------
Total replacement capital 548 577 1,532 1,423
--------- --------- --------- ---------
Information services 16 28 59 71
Terminal and line expansion 23 65 78 210
--------- --------- --------- ---------
Total capital expenditures
excluding equipment $ 587 $ 670 $ 1,669 $ 1,704
========= ========= ========= =========
Acquisition of equipment $ 159 $ 238 $ 615 $ 676
========= ========= ========= =========
Track miles of rail laid
Replacement capital 327 295 850 699
Expansion projects 5 20 17 43
--------- --------- --------- ---------
Total 332 315 867 742
========= ========= ========= =========
Cross ties inserted (thousands)
Replacement capital 1,110 1,008 3,102 2,387
Expansion projects 9 53 22 120
--------- --------- --------- ---------
Total 1,119 1,061 3,124 2,507
========= ========= ========= =========
Track resurfaced (miles) 5,257 4,465 12,623 10,068
========= ========= ========= =========
* Certain comparative prior period amounts have been adjusted to conform to
the current period presentation.
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1095753
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1095757
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1095759
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=1095765
Investor Contact:
Linda Hurt
(817) 352-6452
Media Contact:
John Ambler
(817) 867-6407
SOURCE: Burlington Northern Santa Fe
A service of YellowBrix, Inc.
