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

Exhibit 99.1

   

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

Burlington Northern Santa Fe Reports

All-Time Record Quarterly Volumes, Revenues and EPS

• Quarterly earnings were $1.27 per diluted share, or 32 percent higher than second-quarter 2005 earnings per diluted share of $0.96.

• Second-quarter freight revenues increased $549 million, or 18 percent, on 9-percent volume growth and an increase in fuel surcharge of approximately $205 million compared with the same 2005 period.

• Operating income was a record $863 million, an increase of $153 million, or 22 percent, compared with second-quarter 2005.

• Operating ratio improved by 70 basis points to 76.0 percent compared with the second quarter of 2005.

FORT WORTH, Texas, July 25, 2006 - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported record quarterly earnings of $1.27 per diluted share (including a $0.04 benefit from lower income tax rates), a 32-percent increase over second-quarter 2005 earnings of $0.96 per diluted share.

Second-quarter 2006 freight revenues increased $549 million, or 18 percent, to an all-time quarterly record of $3.59 billion compared with $3.04 billion in the prior year. Second-quarter revenues included a 21-percent increase in coal revenues, attributable to a 14-percent increase in units, and a 19-percent increase in consumer product revenues, reflecting an 8-percent growth in units. Revenue for the second quarter of 2006 included fuel surcharges of approximately $425 million compared with approximately $220 million in the second quarter of 2005.

-more-

“BNSF continues to experience record demand for rail service across all of its business units,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “Our 9-percent increase in volume for the second quarter, led by all-time record quarterly coal loadings, enabled BNSF to record its 17th consecutive quarter of year-over-year volume increases. In the second quarter, BNSF exceeded its previous all-time quarterly record of coal loadings by over 5 percent.”

Compared with the second quarter of 2005, BNSF experienced double-digit revenue increases in each of the Company’s four business groups. Coal revenues rose by $122 million, or 21 percent, to $713 million principally due to record loadings of Powder River Basin coal. Consumer Products revenues increased $238 million, or 19 percent, to $1.48 billion due to strong revenue increases in the international, truckload, less-than-truckload and parcel sectors. Industrial Products revenues increased $120 million, or 17 percent, to $838 million from double-digit revenue growth in all of the Industrial Products sectors. Agricultural Products revenues were up $69 million, or 14 percent, to $562 million, predominately from volume growth in corn.

Operating expenses for the second quarter of 2006 were $2.84 billion compared with second-quarter 2005 operating expenses of $2.43 billion. The $410 million increase in operating expenses was principally driven by a $217 million increase in fuel expense primarily reflecting higher prices and a 9-percent increase in volume.

Second-quarter operating income increased $153 million, or 22 percent, to $863 million compared with the second quarter of 2005. The Company’s operating ratio improved to 76.0 percent compared with 76.7 percent for the same quarter of the prior year.

BNSF’s subsidiary, BNSF Railway Company, operates one of the largest railroad networks in North America, with approximately 32,000 route miles in 28 states and two Canadian provinces. The railway is among the world’s top transporters of intermodal traffic, moves more grain than any other North American railroad, transports the components of many of the products we depend on daily, and hauls enough low-sulphur coal to generate about ten percent of the electricity produced in the United States. BNSF is an industry leader in Web-enabling a variety of customer transactions atwww.bnsf.com.

Financial information follows.

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Burlington Northern Santa Fe Corporation

Consolidated Income Information

(Dollars in millions, except per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
	2006			2005			2006			2005
Operating revenues
Freight revenues	$	3,592		$	3,043		$	6,961		$	5,942
Other revenues		109			95			203			178
Total operating revenues		3,701			3,138			7,164			6,120
Operating expenses
Compensation and benefits		928			849			1,847			1,702
Fuel		678			461			1,239			853
Purchased services		481			424			945			841
Depreciation and amortization		279			268			556			531
Equipment rents		232			218			463			431
Materials and other		240			208			459			418
Total operating expenses		2,838			2,428			5,509			4,776
Operating income		863			710			1,655			1,344
Interest expense		118			112			239			221
Other expense, net		11			8			20			15
Income before income taxes		734			590			1,396			1,108
Income tax expense		264			224			516			421
Net income	$	470		$	366		$	880		$	687
Diluted earnings per share	$	1.27		$	0.96		$	2.35		$	1.79
Diluted average shares outstanding (in millions)		370.7			381.7			373.7			383.1
Operating ratio (a)		76.0	%		76.7	%		76.2	%		77.4	%

(a) Calculated as total operating expenses less other revenues divided by freight revenues.

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Burlington Northern Santa Fe Corporation

Consolidated Balance Sheet Information

(Dollars in millions, except per share amounts)

	June 30, 2006			December 31, 2005
Assets
Current assets:
Cash and cash equivalents	$	73		$	75
Accounts receivable, net		542			678
Materials and supplies		466			396
Current portion of deferred income taxes		248			218
Current portion of fuel-hedging asset		196			303
Other current assets		317			210
Total current assets		1,842			1,880
Property and equipment, net		27,107			26,551
Other assets		2,080			1,873
Total assets	$	31,029		$	30,304
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and other current liabilities	$	2,745		$	2,773
Long-term debt due within one year		751			456
Total current liabilities		3,496			3,229
Long-term debt and commercial paper		6,521			6,698
Deferred income taxes		8,015			7,916
Casualty and environmental liabilities		844			878
Minimum pension liability		417			417
Employee separation costs		95			107
Other liabilities		1,651			1,551
Total liabilities		21,039			20,796
Stockholders’ equity:
Common stock and additional paid-in capital		6,900			6,707
Retained earnings		8,780			8,045
Treasury stock and other		(5,690	)		(5,244	)
Total stockholders’ equity		9,990			9,508
Total liabilities and stockholders’ equity	$	31,029		$	30,304
Book value per share	$	27.60		$	25.59
Common shares outstanding (in millions)		361.9			371.6

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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,
	2006			2005			2006			2005
Operating activities
Net income	$	470		$	366		$	880		$	687
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		279			268			556			531
Deferred income taxes		59			69			114			141
Other, net		5			(7	)		(31	)		(66	)
Changes in working capital		(60	)		15			15			(14	)
Net cash provided by operating activities		753			711			1,534			1,279
Investing activities
Capital expenditures		(569	)		(472	)		(1,024	)		(798	)
Other, net		52			(287	)		(226	)		(504	)
Net cash used for investing activities		(517	)		(759	)		(1,250	)		(1,302	)
Financing activities
Dividends paid		(73	)		(64	)		(147	)		(128	)
Purchase of BNSF common stock		(261	)		(217	)		(375	)		(442	)
Proceeds from stock options exercised		25			26			87			127
Other, net		58			267			149			223
Net cash (used for) provided by financing activities		(251	)		12			(286	)		(220	)
Decrease in cash and cash equivalents		(15	)		(36	)		(2	)		(243	)
Cash and cash equivalents:
Beginning of period		88			115			75			322
End of period	$	73		$	79		$	73		$	79

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Burlington Northern Santa Fe Corporation

Operating Statistics

	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006		2005
Cars/units (in thousands)		2,679		2,465		5,200		4,873
Average revenues per car/unit	$	1,341	$	1,234	$	1,339	$	1,219
Revenue ton miles (in millions)		161,831		147,101		314,842		292,922
Gross ton miles (in millions)		281,931		261,813		550,111		520,542
RTM/GTM		0.57		0.56		0.57		0.56
Freight revenue/thousand RTM	$	22.20	$	20.69	$	22.11	$	20.29
Operating expense/thousand RTM	$	17.54	$	16.51	$	17.50	$	16.30
Freight revenue/thousand GTM	$	12.74	$	11.62	$	12.65	$	11.42
Operating expense/thousand GTM	$	10.07	$	9.27	$	10.01	$	9.18
Compensation and benefits/thousand GTM	$	3.29	$	3.24	$	3.36	$	3.27
Average employees		41,847		39,632		41,260		38,977
Period end employees		42,357		40,023		42,357		40,023
Thousand RTM/average employee		3,867		3,712		7,631		7,515
Thousand GTM/average employee		6,737		6,606		13,333		13,355
Gallons of fuel used (in millions)		370		348		730		694
Average price per gallon of fuel (a)	$	1.83	$	1.33	$	1.70	$	1.23
GTM/gallon of fuel		762		752		754		750
Freight train miles (in millions)		43		41		85		83
GTM/freight train hours (in thousands)		122		121		122		124
Route miles operated		31,943		32,248		31,943		32,248

(a) 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
	2006		2005				2006		2005
Revenues(in millions)
Intermodal	$	1,252	$	1,041	20.3	%	$	2,355	$	1,997	17.9	%
Automotive		120		104	15.4			233		196	18.9
Other Consumer Products		107		96	11.5			211		178	18.5
Total Consumer Products		1,479		1,241	19.2			2,799		2,371	18.1
Industrial Products		838		718	16.7			1,610		1,365	17.9
Coal		713		591	20.6			1,393		1,189	17.2
Agricultural Products		562		493	14.0			1,159		1,017	14.0
Total freight revenue		3,592		3,043	18.0			6,961		5,942	17.1
Other revenue		109		95	14.7			203		178	14.0
Total revenues	$	3,701	$	3,138	17.9	%	$	7,164	$	6,120	17.1	%
Cars/units(in thousands)
Intermodal		1,324		1,213	9.2	%		2,540		2,359	7.7	%
Automotive		46		47	(2.1	)		90		90	0.0
Other Consumer Products		49		50	(2.0	)		97		96	1.0
Total Consumer Products		1,419		1,310	8.3			2,727		2,545	7.2
Industrial Products		409		397	3.0			799		783	2.0
Coal		613		536	14.4			1,194		1,090	9.5
Agricultural Products		238		222	7.2			480		455	5.5
Total cars/units		2,679		2,465	8.7	%		5,200		4,873	6.7	%
Average revenue per car/unit
Intermodal	$	946	$	858	10.2	%	$	927	$	847	9.5	%
Automotive		2,609		2,213	17.9			2,589		2,178	18.9
Other Consumer Products		2,184		1,920	13.7			2,175		1,854	17.3
Total Consumer Products		1,042		947	10.0			1,026		932	10.2
Industrial Products		2,049		1,809	13.3			2,015		1,743	15.6
Coal		1,163		1,103	5.5			1,167		1,091	7.0
Agricultural Products		2,361		2,221	6.3			2,415		2,235	8.0
Average revenue per car/unit	$	1,341	$	1,234	8.6	%	$	1,339	$	1,219	9.8	%
Revenue ton miles (in millions)
Intermodal		32,629		30,315	7.6	%		62,478		59,250	5.4	%
Automotive		1,542		1,507	2.3			3,023		2,901	4.2
Other Consumer Products		3,471		3,553	(2.3	)		6,906		6,697	3.1
Total Consumer Products		37,642		35,375	6.4			72,407		68,848	5.2
Industrial Products		28,728		27,185	5.7			56,097		52,862	6.1
Coal		68,151		58,918	15.7			131,200		117,879	11.3
Agricultural Products		27,310		25,623	6.6			55,138		53,333	3.4
Total revenue ton miles		161,831		147,101	10.0	%		314,842		292,922	7.5	%
Freight revenue per thousand ton miles
Intermodal	$	38.37	$	34.34	11.7	%	$	37.69	$	33.70	11.8	%
Automotive		77.82		69.01	12.8			77.08		67.56	14.1
Other Consumer Products		30.83		27.02	14.1			30.55		26.58	15.0
Total Consumer Products		39.29		35.08	12.0			38.66		34.44	12.2
Industrial Products		29.17		26.41	10.4			28.70		25.82	11.1
Coal		10.46		10.03	4.3			10.62		10.09	5.3
Agricultural Products		20.58		19.24	7.0			21.02		19.07	10.2
Freight revenue per thousand ton miles	$	22.20	$	20.69	7.3	%	$	22.11	$	20.29	9.0	%

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Burlington Northern Santa Fe Corporation

Capital Expenditures and Track Maintenance

	Three Months Ended June 30,				Six Months Ended June 30,
	2006		2005		2006		2005
Capital expenditures(in millions)
Maintenance of way
Rail	$	101	$	69	$	156	$	106
Ties		90		90		154		152
Surfacing		64		55		102		83
Other		109		93		204		169
Total maintenance of way		364		307		616		510
Mechanical		42		33		85		62
Information services		18		16		34		34
Other		30		22		61		41
Total maintenance of business		454		378		796		647
Terminal and line expansion		115		94		228		151
Total capital expenditures	$	569	$	472	$	1,024	$	798
Track maintenance
Track miles of rail laid
Maintenance of business		246		183		353		248
Expansion projects		29		57		60		78
Total		275		240		413		326
Cross ties inserted (thousands)
Maintenance of business		738		939		1,311		1,424
Expansion projects		101		134		193		190
Total		839		1,073		1,504		1,614
Track resurfaced (miles)		4,211		3,877		6,742		5,984

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