Burlington Northern Santa Fe (BNI) 8-K Burlington Northern Santa Fe Reports

Exhibit 99.1

NEWS

Investor Contact:	Marsha Morgan	FOR IMMEDIATE RELEASE
	(817) 352-6452
Media Contact:	Richard Russack
	(817) 867-6425

Burlington Northern Santa Fe Reports

Second-Quarter 2003 Results

• Second-quarter 2003 earnings was $0.54 per share compared with second-quarter 2002 earnings of $0.51 per share.

• Freight revenues increased 3.7 percent to $2.26 billion compared with the prior-year period, on a 4.6 percent increase in units handled.

• Fuel expense increased $56 million, year-over-year.

• Operating income was $412 million compared with $421 million a year ago.

• Lower second-quarter 2003 income tax expense primarily reflects a favorable tax settlement.

FORT WORTH, Texas, July 22, 2003—Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported second-quarter 2003 earnings of $0.54 per share compared with second-quarter 2002 earnings of $0.51 per share.

“Strong international volumes led BNSF to having overall revenue growth for the second consecutive quarter,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer, “however, our bottom line continues to be impacted because of a 27 percent increase in fuel expense year-over-year.”

Freight revenues for the second quarter increased 3.7 percent, or $80 million, to $2.26 billion compared with 2002 second-quarter revenues of $2.18 billion. Consumer Products revenues increased $63 million, or 7 percent, to $911 million reflecting record growth in our international, truckload and perishable sectors. Coal revenues increased $16 million, or 3 percent, to $504 million, largely from index-driven rate increases. Agricultural Products

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revenues grew $5 million, or 2 percent, to $317 million, reflecting increased ethanol shipments from plants in the Midwest to California. Industrial Products revenues declined $4 million, or 1 percent, to $531 million with revenue growth in both the building and construction products sectors offset by weak demand in the chemical and petroleum products sectors. Second-quarter freight revenues included increased fuel surcharges of $24 million compared with the prior year.

Operating expenses of $1.88 billion were $96 million, or 5 percent, higher than the same 2002 period primarily related to fuel expense and higher volumes handled. The $56 million increase in fuel expense primarily relates to an average increase of $0.16 per gallon in the cost of diesel fuel to $0.89 per gallon, after hedge.

Operating income was $412 million for the 2003 second quarter compared with $421 million for the same 2002 period. Lower income tax expense in the second quarter of 2003 primarily reflects a favorable tax settlement.

Common Stock Repurchases

During the 2003 second quarter, BNSF repurchased approximately 2 million shares of its common stock at an average price of $27.57 per share. This brings total repurchases under BNSF’s 150-million share-repurchase program to approximately 120 million shares as of June 30, 2003, at an average price of $25.98 per share since the program was announced in July 1997.

Through its subsidiary, The Burlington Northern and Santa Fe Railway Company, BNSF operates one of the largest railroad networks in North America, with about 32,500 route miles covering 28 states and two Canadian provinces. BNSF is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com. The railway is among the world’s top transporters of intermodal traffic, moves more grain than any other American railroad, transports the mineral components of many of the products we depend on daily, and hauls enough coal to generate about 10 percent of the electricity produced in the United States.

Financial Information Follows.

Statements made in this release concerning projections or expectations of financial or operational performance, or concerning other future events or objectives or results, are “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements involve a number of risks and uncertainties and actual results may differ

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materially from that projected or implied in those statements. Important factors that could cause such differences include, but are not limited to, economic and industry conditions: material adverse changes in economic or industry conditions, both within the United States and globally, customer demand, effects of adverse economic conditions affecting shippers, adverse economic conditions in the industries and geographic areas that produce and consume freight, competition and consolidation within the transportation industry, the extent to which BNSF is successful in gaining new long-term relationships with customers or retaining existing ones, changes in fuel prices, changes in the securities and capital markets, and changes in labor costs and labor difficulties, including stoppages affecting either BNSF’s operations or our customers’ abilities to deliver goods to BNSF for shipment; legal and regulatory factors: developments and changes in laws and regulations and the ultimate outcome of shipper and rate claims subject to adjudication, environmental investigations or proceedings and other types of claims and litigation; and operating factors: technical difficulties, changes in operating conditions and costs, competition, and commodity concentrations, the Company’s ability to achieve its operational and financial initiatives and to contain costs, as well as natural events such as severe weather, floods and earthquakes or other disruptions of the Company’s operating systems, structures, or equipment.

The Company cautions against placing undue reliance on forward-looking statements, which reflect its current beliefs and are based on information currently available to it as of the date a forward-looking statement is made. The Company undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement. Any corrections or revisions may appear in the Company’s public filings with the Securities and Exchange Commission (SEC), which are accessible at www.sec.gov or on the Company’s website at www.bnsf.com, and which you are advised to consult. Investors are encouraged to read the Company’s earnings release and investors’ report together with its SEC filings for a more complete picture and better understanding of the Company and its financial disclosures.

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Burlington Northern Santa Fe Corporation

Consolidated Income Information*

(in millions, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2003			2002			2003			2002
Operating revenues
Freight revenues	$	2,263		$	2,183		$	4,465		$	4,321
Other revenues		31			24			61			49
Total operating revenues		2,294			2,207			4,526			4,370
Operating expenses
Compensation and benefits		699			698			1,416			1,416
Purchased services		312			282			613			557
Depreciation and amortization		225			231			451			461
Equipment rents		180			177			349			352
Fuel		263			207			537			391
Materials and other		203			191			402			392
Total operating expenses		1,882			1,786			3,768			3,569
Operating income		412			421			758			801
Interest expense		106			105			212			214
Other expense, net		3			6			5			2
Income before income taxes and cumulative effect of accounting change		303			310			541			585
Income tax expense		103			116			193			219
Income before cumulative effect of accounting change		200			194			348			366
Cumulative effect of accounting change, net of tax (a)		—		��	—			39			—
Net income	$	200		$	194		$	387		$	366
Diluted earnings per share before cumulative effect of accounting change	$	0.54		$	0.51		$	0.94		$	0.95
Diluted earnings per share after cumulative effect of accounting change	$	0.54		$	0.51		$	1.04		$	0.95
Diluted average shares outstanding (in millions)		372.4			382.3			372.9			383.9
Operating ratio (b)		81.8	%		80.7	%		83.0	%		81.5	%

(a) Reflects the adoption of Statement of Financial Accounting Standards (SFAS) No. 143,Accounting for Asset Retirement Obligations. This new standard changes the way the rail industry accounts for asset retirement costs.

(b) Calculated as Total operating expenses less Other revenues divided by Freight revenues.

* Certain prior period amounts have been reclassified to conform with the current period presentation.

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Burlington Northern Santa Fe Corporation

Consolidated Balance Sheet Information

(Dollars in millions, except per share amounts)

	June 30,			December 31,
	2003			2002
Assets
Current assets:
Cash and cash equivalents	$	43		$	28
Accounts receivable, net		148			141
Materials and supplies		229			226
Current portion of deferred income taxes		304			314
Other current assets		115			82
Total current assets		839			791
Property and equipment, net		24,541			24,022
Other assets		999			954
Total assets	$	26,379		$	25,767
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and other current liabilities	$	1,898		$	1,918
Long-term debt due within one year		153			173
Total current liabilities		2,051			2,091
Long-term debt and commercial paper		6,876			6,641
Deferred income taxes		7,180			6,975
Casualty and environmental liabilities		445			444
Minimum pension liability		368			368
Employee merger and separation costs		156			170
Other liabilities		1,154			1,146
Total liabilities		18,230			17,835
Stockholders' equity:
Common stock and additional paid-in capital		5,712			5,669
Retained earnings		5,922			5,625
Treasury stock		(3,240	)		(3,114	)
Unearned compensation		(46	)		(39	)
Accumulated other comprehensive loss		(199	)		(209	)
Total stockholders' equity		8,149			7,932
Total liabilities and stockholders' equity	$	26,379		$	25,767
Book value per share	$	21.86		$	21.11
Common shares outstanding (in millions)		372.8			375.8
Net debt to total capitalization*		46.2	%		46.1	%

* Net debt is calculated as total debt less Cash and cash equivalents, and capitalization is calculated as the sum of net debt and Total stockholders' equity.

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Burlington Northern Santa Fe Corporation

Consolidated Cash Flow Information

(in millions)

	Three Months Ended June 30,						Six Months Ended June 30,
	2003			2002			2003			2002
Operating activities
Net income	$	200		$	194		$	387		$	366
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		225			231			451			461
Deferred income taxes		114			122			183			190
Employee merger and separation costs paid		(8	)		(11	)		(18	)		(31	)
Cumulative effect of accounting change		—			—			(39	)		—
Other, net		(24	)		(30	)		(17	)		(33	)
Changes in working capital		57			20			(56	)		(71	)
Net cash provided by operating activities		564			526			891			882
Investing activities
Capital expenditures		(495	)		(381	)		(835	)		(641	)
Other, net		(22	)		10			(32	)		(98	)
Net cash used for investing activities		(517	)		(371	)		(867	)		(739	)
Financing activities
Net borrowings		9			171			188			267
Dividends paid		(44	)		(46	)		(89	)		(92	)
Purchase of BNSF common stock		(46	)		(119	)		(123	)		(199	)
Proceeds from stock options exercised		16			8			18			35
Other financing activities		(4	)		(2	)		(3	)		(2	)
Net cash provided by (used for) financing activities		(69	)		12			(9	)		9
Increase (decrease) in cash and cash equivalents		(22	)		167			15			152
Cash and cash equivalents:
Beginning of period		65			11			28			26
End of period	$	43		$	178		$	43		$	178

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Burlington Northern Santa Fe Corporation

Operating Statistics

	Three Months Ended June 30,				Six Months Ended June 30,
	2003		2002		2003		2002
Cars/units (in thousands)		2,129		2,036		4,171		3,963
Average revenue per car/unit	$	1,063	$	1,072	$	1,070	$	1,090
Revenue ton miles (in millions)		124,465		120,123		245,364		240,245
Gross ton miles (in millions)		223,477		214,334		440,788		426,795
RTM/GTM		0.56		0.56		0.56		0.56
Freight revenue/thousand RTM	$	18.18	$	18.17	$	18.20	$	17.99
Operating expense/thousand RTM	$	15.12	$	14.87	$	15.36	$	14.86
Freight revenue/thousand GTM	$	10.13	$	10.19	$	10.13	$	10.12
Operating expense/thousand GTM	$	8.42	$	8.33	$	8.55	$	8.36
Compensation and benefits/thousand GTM	$	3.13	$	3.26	$	3.21	$	3.32
Average employees		37,086		37,838		36,528		37,432
Period end employees		36,654		37,577		36,654		37,577
Thousand RTM/average employee		3,356		3,175		6,717		6,418
Thousand GTM/average employee		6,026		5,665		12,067		11,402
Gallons of fuel used (in millions)		297		283		589		566
Average price per gallon of fuel (cents)*		88.6		73.1		91.2		69.1
GTM/gallon of fuel		752		757		748		754
Freight train miles (in millions)		38		36		75		71
GTM/freight train hours (in thousands)		134		146		137		147
Route Miles Operated		32,318		32,954		32,318		32,954

* Includes handling, taxes and hedge effect.

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Burlington Northern Santa Fe Corporation

Revenue Statistics by Commodity

	Three Months Ended June 30,				Percent Change		Six Months Ended June 30,				Percent Change
Revenues (in millions)	2003		2002				2003		2002
Intermodal	$	757	$	693	9.2	%	$	1,453	$	1,326	9.6	%
Automotive		80		86	(7.0	)		161		167	(3.6	)
Other Consumer Products		74		69	7.2			145		133	9.0
Total Consumer Products		911		848	7.4			1,759		1,626	8.2
Industrial Products		531		535	(0.7	)		1,042		1,026	1.6
Coal		504		488	3.3			989		996	(0.7	)
Agricultural Products		317		312	1.6			675		673	0.3
Total freight revenue		2,263		2,183	3.7			4,465		4,321	3.3
Other revenue		31		24	29.2			61		49	24.5
Total revenues	$	2,294	$	2,207	3.9	%	$	4,526	$	4,370	3.6	%
Cars/units (in thousands)
Intermodal		1,002		905	10.7	%		1,926		1,709	12.7	%
Automotive		40		40	—			82		77	6.5
Other Consumer Products		43		41	4.9			83		80	3.8
Total Consumer Products		1,085		986	10.0			2,091		1,866	12.1
Industrial Products		354		373	(5.1	)		697		705	(1.1	)
Coal		504		500	0.8			991		1,011	(2.0	)
Agricultural Products		186		177	5.1			392		381	2.9
Total cars/units		2,129		2,036	4.6	%		4,171		3,963	5.2	%
Average revenue per car/unit
Intermodal	$	755	$	766	(1.4	)%	$	754	$	776	(2.8	)%
Automotive		2,000		2,150	(7.0	)		1,963		2,169	(9.5	)
Other Consumer Products		1,721		1,683	2.3			1,747		1,663	5.1
Total Consumer Products		840		860	(2.3	)		841		871	(3.4	)
Industrial Products		1,500		1,434	4.6			1,495		1,455	2.7
Coal		1,000		976	2.5			998		985	1.3
Agricultural Products		1,704		1,763	(3.3	)		1,722		1,766	(2.5	)
Average revenue per car/unit	$	1,063	$	1,072	(0.8	)%	$	1,070	$	1,090	(1.8	)%
Revenue ton miles (in millions)
Intermodal		25,040		23,246	7.7	%		48,254		44,093	9.4	%
Automotive		1,195		1,267	(5.7	)		2,448		2,499	(2.0	)
Other Consumer Products		3,102		3,030	2.4			6,169		6,008	2.7
Total Consumer Products		29,337		27,543	6.5			56,871		52,600	8.1
Industrial Products		23,982		24,312	(1.4	)		47,254		46,500	1.6
Coal		51,662		50,294	2.7			99,536		100,867	(1.3	)
Agricultural Products		19,484		17,974	8.4			41,703		40,278	3.5
Total revenue ton miles		124,465		120,123	3.6	%		245,364		240,245	2.1	%
Freight revenue per thousand ton miles
Intermodal	$	30.23	$	29.81	1.4	%	$	30.11	$	30.07	0.1	%
Automotive		66.95		67.88	(1.4	)		65.77		66.83	(1.6	)
Other Consumer Products		23.86		22.77	4.8			23.50		22.14	6.1
Total Consumer Products		31.05		30.79	0.8			30.93		30.91	0.1
Industrial Products		22.14		22.01	0.6			22.05		22.06	(0.0	)
Coal		9.76		9.70	0.6			9.94		9.87	0.7
Agricultural Products		16.27		17.36	(6.3	)		16.19		16.71	(3.1	)
Freight revenue per thousand ton miles	$	18.18	$	18.17	0.1	%	$	18.20	$	17.99	1.2	%

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Burlington Northern Santa Fe Corporation

Capital Expenditures and Track Maintenance

	Three Months Ended June 30,				Six Months Ended June 30,
	2003		2002		2003		2002
Capital expenditures (in millions)
Maintenance of way
Rail	$	79	$	63	$	125	$	106
Ties		82		81		133		136
Surfacing		47		46		72		69
Other		96		83		167		144
Total maintenance of way		304		273		497		455
Mechanical		26		34		48		62
Information services		15		23		25		41
Other		19		21		38		27
Total maintenance of business		364		351		608		585
New locomotive acquisitions		84		—		156		—
Terminal and line expansion		45		27		67		49
Other		2		3		4		7
Total capital expenditures	$	495	$	381	$	835	$	641
Operating lease commitments	$	—	$	100	$	—	$	106
Total capital commitments	$	495	$	481	$	835	$	747
Track maintenance
Track miles of rail laid
Maintenance of business		249		229		356		319
Expansion projects		29		2		33		2
Total		278		231		389		321
Cross ties inserted (thousands)
Maintenance of business		867		971		1,220		1,449
Expansion projects		75		6		76		7
Total		942		977		1,296		1,456
Track resurfaced (miles)		3,851		4,179		5,811		5,727

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