BNSF raises earnings 24% in Q2 2017

The Fort Worth Texas-based Class I railroad recorded a net income of $958 million on revenues of $5.25 billion, up 24 percent and 15 percent year-over-year, respectively, amid increased volumes and a higher average revenue per car/unit.    Berkshire Hathaway-owned BNSF Railway Co. recorded a net income of $958 million for the second quarter of 2017, a 24 percent increase from last year’s second quarter, according to the company’s most recent financial statements.
   The Fort Worth Texas-based Class I railroad’s total operating revenues for the quarter stood at $5.25 billion, up 15 percent from the same 2016 period, fueled by a 9 percent year-over-year boost in volumes and a higher average revenue per car/unit.
   Total freight revenues reached $5 billion for the quarter, also up 15 percent year-over-year.
   Broken down by business unit, compared to the second quarter of 2016, revenues from:
     • Consumer products increased 8 percent to $1.74 billion;
     • Industrial products increased 7 percent to $1.27 billion;
     • Agricultural products increased 18 percent to $1.07 billion;
     • And coal increased 39 percent to $912 million.
   BNSF’s planned capital commitments for the full year of 2017 stand at $3.4 billion, compared with $3.9 billion for 2016.
   “Similar to last year’s plan, the 2017 capital program focus continues to be maintenance and replacement of BNSF’s network and related assets to ensure BNSF continues to operate a safe and reliable network,” the railway said. “This year that component is expected to be $2.4 billion. These projects will primarily go toward replacing and upgrading rail, rail ties and ballast and maintaining rolling stock. BNSF will spend $400 million on expansion projects, $200 million for continued implementation of positive train control and $400 million on locomotives, freight cars and other equipment acquisitions.”