Fort Worth-based Burlington Northern Santa Fe Corp. announced Oct. 22 its third-quarter earnings fell 30 percent as the recession continued to hamper industrial production and consumer purchases, reports the Ft. Worth Business Press.
The transportation company earned $488 million, or $1.42 per share, compared with $695 million, or $1.99 per share at the same point last year.
Revenue fell 27 percent to $3.5 billion, compared with $4.77 billion in the previous year. The 27-percent decrease in revenues included a decrease in fuel surcharges of $725 million. The remaining variance was due to 17 percent lower unit volumes as a result of the economic downturn, partially offset by improved yields. Revenue from shipments of consumer products fell 36 percent, slightly more than BNSFs industrial production segment, where revenue fell 34 percent.
"During the recession, BNSF has demonstrated significant operating leverage through ongoing dedication to controlling costs and productivity improvements," said Matt Rose, BNSF chairman, president and CEO, in a press release. "The combination of our significant operating leverage and long-term market opportunities places BNSF in a strong position when the economy recovers."
Coal revenues were down $107 million, or 10 percent, to $940 million on lower unit volumes driven by soft demand due to economic conditions and mild summer weather, partially offset by a favorable coal rate case adjustment and improved yields.
Agricultural products revenues declined $194 million, or 21 percent, to $715 million on lower unit volumes predominately driven by reduced domestic loadings and international grain shipments.
Industrial products revenues of $747 million were $377 million, or 34 percent lower than the third quarter of 2008, due primarily to lower unit volumes, driven by lower demand for construction and building products, partially offset by improved yields.
Consumer products revenues decreased $599 million, or 36 percent, to $1.09 billion, on lower international intermodal, domestic intermodal and automotive volumes due to economic conditions.
Revenue was also impacted in each of the business units because of lower fuel surcharges.
(The preceding article was published by the Ft. Worth Business Press.)
