Good 2Q for BNSF
Written by Douglas John BowenBNSF Railway, wholly owned by Omaha-based Berkshire Hathaway, Inc., has reported second-quarter net income of $916 million, up 4% from $884 million in the comparable quarter of 2013.
Second-quarter revenue rose 8% to $5.73 billion from $5.32 billion in the year-ago quarter; BNSF also noted, “Revenue per unit increased for both the second quarter and the first six months of 2014.”
BNSF’s operating ratio of 70.1% for the quarter slipped somewhat from 69.8% in the comparable quarter of 2013. The operating ratio “excludes impacts of BNSF Logistics,” the company cautioned.
The Class I railroad noted coal volume rose 6% during the second quarter, while consumer product volume advanced 4% “primarily due to higher international intermodal traffic.”
BNSF said it remains committed to its 2014 capital commitment of $5.0 billion “compared with $4.0 billion in 2013.”
BNSF added, “We will spend $2.3 billion in capital in 2014 on our core network and related assets. In addition, we will continue investing in our locomotive and rail car fleet, inprojects tha expand and improve the efficiency of our infrastructure, and continue installing Positive Train Control in response to a federal mandate.”
Parent Berkshire Hathaway on Aug. 4, 2014 posted second-quarter net income of $6.4 billion, up 41% from the year-ago quarter.
