EXHIBIT 99.1
[BNSF LETTERHEAD]
Contact: Richard Russack FOR IMMEDIATE RELEASE
(817) 352-6425
Burlington Northern Santa Fe Reports
First Quarter 2001 Results
. Earnings of $0.36 per diluted share, before extraordinary charge,
compared with first quarter 2000 earnings of $0.55 per diluted share.
First quarter 2001 earnings include $40 million or $0.10 per diluted
share of previously announced non-recurring losses related to non-rail
investments.
. Freight revenues were $2.26 billion, up slightly on 4 percent higher
ton-miles, despite continued softness in the U.S. economy.
. Fuel expenses were $46 million higher than 2000.
. Winter weather and higher other energy-related costs were estimated at
$25 million more than 2000.
. First quarter operating income of $419 million is $91 million lower than
first quarter 2000 operating income of $510 million.
FORT WORTH, Texas, April 24, 2001 -- Burlington Northern Santa Fe
Corporation (BNSF) (NYSE: BNI) today reported first quarter 2001 earnings of
$0.36 per diluted share, before an extraordinary charge, compared with first
quarter 2000 earnings of $0.55 per diluted share. First quarter 2001 earnings
include $40 million or $0.10 per diluted share of previously announced
non-recurring losses related to non-rail investments.
"BNSF's well-balanced business portfolio allowed us to achieve a slight
increase in revenue despite the continued softness of the U.S. economy," said
Matt Rose, BNSF President and Chief Executive Officer. "However, an additional
$46 million in fuel expenses, more severe winter weather and higher electricity
and other energy costs contributed to a 7 percent increase in expenses as
compared with a year ago."
-more-
BNSF IQ Earnings / Page Two
Freight revenues for the 2001 first quarter were $2.26 billion, up slightly
on 4 percent higher ton-miles compared with the same 2000 period. Agricultural
Commodities revenues increased $36 million, or 11 percent, to $361 million,
primarily due to increased demand for soybeans moving through the Pacific
Northwest to China and increased northern spring wheat moving to the upper
Midwest and eastern domestic markets. Consumer revenues increased $6 million,
or 1 percent, to $807 million reflecting new truckload business and higher
international volumes for intermodal, offset by decreased automotive shipments.
Coal revenues declined $3 million, or 1 percent, to $526 million as a result of
lower revenue per unit on certain contract renewals; this was partially offset
by increased demand for western coal due to colder weather, tight eastern coal
supplies and high natural gas prices. Industrial revenues fell $18 million or 3
percent, to $569 million because of production cutbacks affecting most sectors.
Operating expenses of $1.87 billion were $119 million higher than the
2000 first quarter. Expenses increased primarily from the impact of more severe
winter weather conditions, higher electricity and other energy costs, increased
compensation and benefit rates, and higher ton-miles. Fuel expense was $46
million higher than 2000 as the average cost of diesel fuel per gallon increased
14 cents.
Operating income was $419 million for the first quarter 2001 compared
with $510 million a year ago. The operating ratio increased to 81.5 percent for
the first quarter 2001 compared with 77.3 percent in 2000.
Common Stock Repurchases
During the first quarter, BNSF repurchased 2.2 million shares at an
average price of $28.86 per share, bringing total repurchases under BNSF's 120
million share-repurchase program to 93.9 million shares at an average price of
$25.57 per share since the program was announced in July 1997.
Through the Burlington Northern and Santa Fe Railway Company, BNSF
operates one of the largest railroad networks in the United States, with 33,500
route miles covering 28 states and two Canadian provinces.
Consolidated financial statements follow.
Burlington Northern Santa Fe Corporation
Consolidated Income Information *
(Unaudited. In millions, except per share data)
Three Months Ended
March 31,
-----------------------------
2001 2000
----------- -----------
Operating revenues
Freight revenues $ 2,263 $ 2,242
Other revenues 29 22
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Total operating revenues 2,292 2,264
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Operating expenses
Compensation and benefits 729 698
Purchased services 261 258
Depreciation and amortization 228 222
Equipment rents 187 179
Fuel 257 211
Materials and other 211 186
----------- -----------
Total operating expenses 1,873 1,754
----------- -----------
Operating income 419 510
Interest expense 120 104
Other income (expense) - net (73) (15)
----------- -----------
Income before income taxes 226 391
Income tax expense 86 148
----------- -----------
Income before extraordinary charge 140 243
Extraordinary charge, net of tax (6) -
----------- -----------
Net income $ 134 $ 243
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Earnings per share
Diluted
Before extraordinary charge $ 0.36 $ 0.55
=========== ===========
After extraordinary charge $ 0.34 $ 0.55
=========== ===========
Diluted average shares outstanding 394.1 445.5
=========== ===========
Operating ratio 81.5% 77.3%
=========== ===========
* Other income (expense) - net in 2001 includes $64 million pre-tax ($40 million
after-tax or $0.10 per diluted share) of previously announced non-recurring
losses related to non-rail investments. The extraordinary charge reflects a
loss on early extinguishment of debt.
Burlington Northern Santa Fe Corporation
(Unaudited. In millions)
Condensed Consolidated Balance Sheet Information
March 31, December 31,
2001 2000
------------ ------------
Assets
Cash and cash equivalents $ 15 $ 11
Other current assets 915 965
------------ ------------
Total current assets 930 976
Properties and other assets $ 23,475 $ 23,399
------------ ------------
Total assets $ 24,405 $ 24,375
============ ============
Liabilities and Stockholders' Equity
Long-term debt due within one year $ 235 $ 232
Other current liabilities 1,826 1,954
Long-term debt and commercial paper 6,636 6,614
Deferred income taxes 6,480 6,422
Other liabilities 1,633 1,673
Stockholders' equity 7,595 7,480
------------ ------------
Total liabilities and stockholders' equity $ 24,405 $ 24,375
============ ============
Condensed Consolidated Cash Flow Information
Three Months Ended
March 31,
--------------------------
2001 2000
------------ ------------
Cash provided by operating activities $ 360 $ 540
Cash used for capital expenditures (234) (252)
Other investing activities (66) (240)
Dividends paid (48) (55)
------------ ------------
Free cash flow after dividends paid 12 (7)
Purchase of BNSF common stock (65) (583)
Other financing activities 36 1
------------ ------------
Net debt incurred $ (17) $ (589)
============ ============
Burlington Northern Santa Fe Corporation
Supplemental Data
(Unaudited)
Three Months Ended
March 31,
--------------------------
2001 2000
------------ ------------
Revenues (in millions)
Consumer $ 807 $ 801
Industrial 569 587
Coal 526 529
Agricultural Commodities 361 325
------------ ------------
Total freight revenues 2,263 2,242
Other revenues 29 22
------------ ------------
Total revenues $ 2,292 $ 2,264
============ ============
Operating ratio 81.5% 77.3%
Revenue ton-miles (billions) 125.7 121.0
Freight revenue per thousand revenue ton-miles $ 18.00 $ 18.53
Cars/units (thousands) 1,986 1,988
Average freight revenue per car/unit $ 1,139 $ 1,128
Employees (average) 38,270 39,241