BNSF Q1 earnings climb 37 percent

The Class I railway reported a net income of $1.1 billion on revenues of $5.6 billion.    BNSF, the last of the seven Class I railways to post its first-quarter earnings results, posted a net income of $1.1 billion for the quarter, up 37 percent year-over-year.
   Revenues totaled $5.6 billion, rising 8 percent from last year’s first quarter, thanks to a 5 percent boost in unit volumes.
   BNSF said it anticipates its capital commitments for 2018 will total $3.4 billion.
   The maintenance and replacement component will comprise the largest portion at $2.4 billion, which will be used for replacing and upgrading rail, rail ties and ballast, as well as maintaining rolling stock.
   In addition, BNSF expects to spend $500 million on expansion and efficiency projects, with a focus on areas along the railway’s Southern and Northern Transcon routes; $400 million on freight cars and other equipment acquisitions; and $100 million on positive train control.
   While the Canada-based Class I railroads struggled during the quarter from a harsh winter and grain backlogs, the five U.S.-based Class I railroads fared fairly well.
   Compared to the first quarter of 2017, Union Pacific posted a net income of $1.3 billion, up 22 percent; Norfolk Southern posted a net income of $552 million, up 27 percent; CSX’s net earnings totaled $695 million, up 92 percent; Kansas City Southern reported a net income of $145 million, relatively unchanged from $147 million; Canadian National’s net income of C$741 million was down 16 percent; and Canadian Pacific’s net earnings plunged 19.3 percent to C$348 million.