BNSF ANNOUNCES 4TH QUARTER INCOME
FORT WORTH, Texas -- Burlington Northern Santa Fe Corporation today reported fourth quarter 2000 earnings of $0.65 per share on a diluted basis, 6 percent lower than fourth quarter 1999 earnings of $0.69 per diluted share.
"Reduced traffic volume from a slowing economy, early winter weather hampering some Midwestern rail operations and sharply higher fuel prices impacted BNSF's fourth quarter earnings," said Matthew K. Rose, President and Chief Executive Officer. "However, through cost containment, we increased free cash flow 66 percent to $431 million for full-year 2000 versus $260 million in 1999.'"
Revenues of $2.34 billion for the 2000 fourth quarter were $51 million lower than the prior-year period. Intermodal revenues increased $17 million, or 3 percent, to $692 million, principally reflecting higher international volumes and new truckload business. Carload revenues were $620 million, a decrease of $27 million, or 4 percent, from last year principally as a result of weak chemicals and forest products revenues. Coal revenues in the quarter continued to be softer than the prior year and declined $25 million, or 5 percent, to $528 million largely due to high customer stockpiles accumulated in 1999 as well as the impact of weather on our operations in December 2000. Agricultural Commodities revenues decreased $16 million, or 4 percent, to $347 million, primarily due to weak Pacific Northwest and Mexico exports for corn and wheat.
Operating expenses of $1.80 billion were $8 million higher than the 1999 fourth quarter. Fuel expense was $75 million higher than 1999, despite a 3 percent decrease in consumption. The average cost of diesel fuel per gallon, excluding hedge effects, increased 34 cents to $1.06. Overall expenses, excluding fuel, were down by $67 million, or 4 percent primarily a result of lower environmental and incentive compensation expenses.
Operating income was $544 million for the fourth quarter 2000 compared with $603 million a year ago. The operating ratio increased to 76.5 percent for the fourth quarter 2000 compared with 74.5 percent in 1999.
Full-Year 2000 Results
BNSF's adjusted earnings per share for year ended December 31, 2000 was $2.45 on a diluted basis, a 1 percent increase from 1999 adjusted earnings of $2.43 per diluted share. Revenues for the year were $9.21 billion, an increase of $16 million. Adjusted operating expenses of $7.1 billion for 2000 increased by $102 million or 1 percent. Fuel expense was $232 million higher than 1999 due to sharply higher fuel prices, despite a 1 percent decrease in consumption. Adjusted operating income fell to $2.15 billion from $2.24 billion for 1999. BNSF's adjusted operating ratio increased slightly to 76.4 percent for 2000 compared with 75.4 percent a year earlier. Excluding the $232 million of increased fuel expenses, the operating ratio would have been 73.9 percent.
Common Stock Repurchases
During the fourth quarter, BNSF repurchased 6.1 million shares at an average price of $25.00 per share, bringing total repurchases under BNSF's 120 million share-repurchase program to 91.7 million shares at an average price of $25.48 per share since the program was announced in July 1997. During 2000, BNSF repurchased 64.6 million shares at an average price of $23.16 per share.
Through The Burlington Northern and Santa Fe Railway Company, BNSF owns
one of the largest railroad networks in the United States, with 33,500 route
miles covering 28 states and two Canadian provinces.
January 23, 2001
© 2001 Brotherhood of Locomotive Engineers