BNSF’s net income flat in 4th quarter

BNSF’s net income flat in 4th quarter Burlington Northern Santa Fe Corp., owners of BNSF Railway Co., Tuesday reported fourth quarter net income of $517 million, down 0.4 percent from $519 million in the same quarter in 2006.
   Operating income in the three months improved 0.7 percent to $950 million, which included a $257 million increase in fuel expense. Fourth quarter revenue improved 9.4 percent to $4.25 billion with freight revenue contributing $4.12 billion, up 9.3 percent year on year.
   Quarterly revenue from agricultural products revenues gained 24.5 percent to $804 million while coal revenue increased 15.4 percent to $894 million. Industrial products sales increased 4.6 percent to $926 million. Consumer products revenue was up 2.3 percent to $1.5 billion.
   BNSF’s total cars/units in the quarter declined 2.4 percent to 2.6 million, although the average revenue per car/unit jumped 12.6 percent to $1,585.
   For the year, BNSF reported a net income of $1.83 billion, down 3.2 percent from $1.89 billion in 2006. The company’s operating income declined 1 percent to $3.49 billion. BNSF’s revenue for the year gained 5.5 percent to $15.8 billion with freight revenue up by the same margin to $15.3 billion.
   'For the fifth consecutive year, BNSF achieved all-time record annual revenues and was able to generate record cash flows despite a soft economy,” said Matthew K. Rose, BNSF’s chairman, president and chief executive officer. “In the fourth quarter, the company was able to demonstrate earnings per share growth despite significant fuel headwind and continued softness in the Industrial Products and Consumer Products businesses. Looking forward, we continue to be optimistic about the long-term prospects for BNSF.'
   Meanwhile, BNSF has set a $2.45 billion capital commitment program for 2008, some $350 million lower than last year. The company’s 2008 spend will include leasing about 200 locomotives at a cost of about $400 million and investing more than $200 million in track and facilities to expand capacity.