BNSF’s profit up 21% in 4th-quarter

BNSFÆs profit up 21% in 4th-quarter Burlington Northern Santa Fe Corp., parent company of BNSF Railway Co., Tuesday posted fourth quarter net income of $519 million, up 21 percent from $430 million a year ago.
   BNSF's operating income in the quarter rose 18 percent to $942 million, compared to $800 million in the same period 2005. Operating revenue improved 9 percent to $3.9 billion from $3.6 billion. Freight revenues also increased 9 percent to $3.8 billion.
   'BNSF continued to have industry-leading volume growth in the fourth quarter of 2006, and we experienced our 19th consecutive quarter of year-over-year volume increases,' said Matthew K. Rose, BNSF's chairman, president and chief executive officer. 'Looking forward, we anticipate strong demand will continue for freight rail transportation, reflecting our diverse portfolio of businesses and leading to improved revenues and earnings.'
   For the year, BNSF reported a net income of $1.9 billion, up 23 percent from $1.5 billion in 2005. Operating income in 2006 rose 20 percent to $3.5 billion from $2.9 billion. BNSF's revenue was up 15 percent to $15 billion with freight revenue up by the same margin to $14.5 billion.
   In a related development, BNSF Railway Co. has set a budget of $2.75 billion for capital investments in 2007, including more than $750 million in track and facilities to expand capacity.