BNSF profit down due to cleanup costs

[Zeb]

By Bob Cox -Fort Worth Star Telegram

FORT WORTH, Texas — Burlington Northern Santa Fe, the Fort Worth-based railroad company, said that its second-quarter profit declined 19 percent, largely because of one-time charges for costs of an environmental cleanup in Montana.

Burlington Northern reported a profit of $350 million, or $1 a share, compared with $433 million, or $1.20 a share, a year earlier. Revenue rose 17 percent to $4.48 billion.

The company said it was raising its quarterly dividend by 25 percent to 40 cents a share.

Analysts had projected that BNSF would earn $1.30 a share on revenue of $4.43 billion.

"We experienced a number of challenges during the second quarter," Chief Executive Matthew Rose said in a statement.

BNSF has fully restored rail service that was disrupted by flooding.

Second-quarter freight revenue increased $613 million to $4.35 billion compared with $3.74 billion a year earlier. The 16 percent increase was primarily attributable to improved yields and an increase in fuel surcharges of about $400 million driven by higher fuel prices.

The quarterly results included charges of 31 cents a share in cleanup costs, and 3 cents a share resulting from a fatal grade-crossing accident.

[Popeye]

I heard they are going to start rerouting traffic, and start to run more coal loads across the creek sub, and more 8,000 ft stack traffic from Amarillo to Ft. Worth. Good idea, let's run more stack traffic that makes 1/4 the revenue of a coal load. Thank God the last two letters in BNSF are in charge.

[Ghostrider]

Popeye you ingrate. You know the stacks are where its at. Coal lust pays the bills with no glory. 8000 feet 5 new engines wow thats the glory. Not 2 motors an 19000 tons. Remember Popeye its the glory and our great profit sharing formula.