BNSF’s 4th-quarter earnings up 24%

BNSF’s 4th-quarter earnings up 24%    Burlington Northern Santa Fe Corp., parent company of BNSF Railway Co. Tuesday reported a 23.9-percent jump in fourth quarter net income to $430 million, thanks to double-digit revenue increases in three of its four business segments.
   The Fort Worth, Texas-based company recorded a $71 million pre-tax fourth quarter loss related to an agreement to sell certain line segments to the state of New Mexico.
   BNSF posted net income of $347 million for the fourth quarter in 2004.
   Operating income for the quarter at the second-largest U.S. railroad improved 19.7 percent to $800 million from $668 million in the previous year.
   BNSF’s fourth quarter revenue increased 19.5 percent to $3.55 billion, from $2.98 billion in the fourth quarter of 2004. Freight revenue jumped 18.2 percent to an all-time quarterly record of $3.44 billion from $2.91 billion. Consumer products revenue increased 23 percent to $1.45 billion. Industrial products revenue rose 21 percent to $763 million. Agriculture products revenue improved 20 percent to $592 million, while coal revenue was up 3.6 percent to $637 million.
   The company’s fourth quarter operating expenses increased 19 percent to $2.75 billion, primarily a result of a 47 percent hike in fuel costs to $1.95 billion.
   For the full year, BNSF earned a net income of $1.53 billion, up 93.5 percent over the $791 million posted in 2004. Operating income increased 73.3 percent to $2.92 billion from $1.66 billion, and revenue increased 18.6 percent to $12.98 billion compared to 10.94 billion in 2004.
   “Since mid-2003, BNSF has been handling unprecedented volumes in response to strong customer demand for rail service. As a result, in 2005, BNSF for the first time moved more than 10 million units, achieved nearly $13 billion in revenues, exceeded $4 in earnings per share and attained $669 million in free cash flow after dividends,” said Matthew K. Rose, BNSF chairman, president and chief executive officer.
   BNSF’s stock closed Tuesday up 4.43 percent, or $3.17 to $74.80 on the New York Stock Exchange.