EXHIBIT 99.2
Consolidated Financial Highlights
Burlington Northern Santa Fe Corporation and Subsidiaries
(Dollars in millions, except per share data)
The selected financial data shown below include BNSF results for the years ended
December 31, 1997 and 1996, Burlington Northern Inc. results for each of the
three years ended December 31, 1995 and Santa Fe Pacific results from September
22, 1995 to December 31, 1995.
1997 1996 1995 1994 1993
--------- --------- --------- -------- --------
FOR THE YEAR ENDED:
Revenues............................................... $ 8,413 $ 8,141 $ 6,117 $4,914 $4,615
Operating income (1)................................... 1,767 1,748 526 853 661
Income before extraordinary item and
cumulative effect of change in accounting
method............................................... 885 889 198 426 296
Accounting change/Extraordinary item (2)(3)............ - - (106) (10) -
Net income............................................. $ 885 $ 889 $ 92 $ 416 $ 296
Earnings available for common stockholders............. $ 885 $ 889 $ 71 $ 394 $ 274
Basic earnings per share: (4)
Before extraordinary item and change in
accounting method.................................. $ 1.91 $ 1.95 $ .57 $ 1.51 $ 1.03
Accounting change/Extraordinary item................. - - (.34) (.04) -
Basic earnings per share............................. $ 1.91 $ 1.95 $ .23 $ 1.47 $ 1.03
Average shares (in millions)......................... 464.4 456.3 313.2 267.3 265.5
Diluted earnings per share: (4)
Before extraordinary item and change in
accounting method.................................. $ 1.88 $ 1.91 $ .55 $ 1.46 $ 1.02
Accounting change/Extraordinary item................. - - (.33) (.03) -
Diluted earnings per share........................... $ 1.88 $ 1.91 $ .22 $ 1.43 $ 1.02
Average shares (in millions)......................... 471.1 464.4 317.7 291.3 290.4
Dividends declared per common share (5)................ $ .40 $ .40 $ .40 $ .40 $ .40
AT YEAR END:
Total assets........................................... $21,336 $19,763 $18,269 $7,592 $7,045
Long-term debt and commercial paper,
including current portion............................ 5,289 4,711 4,233 1,819 1,737
Stockholders' equity................................... 6,812 5,981 5,037 2,237 1,919
Total debt to capital.................................. 44% 44% 46% 45% 48%
FOR THE YEAR ENDED:
Capital expenditures................................... $ 2,182 $ 2,234 $ 890 $ 698 $ 676
Depreciation and amortization.......................... 773 760 520 362 352
Operating ratio (6).................................... 77.9% 78.5% 79.4% 82.6% 85.7%
(1) 1997 and 1995 include $90 million and $735 million before taxes,
respectively, related to special charges as discussed in Note 3 of the financial
statements incorporated by reference in the Company's Annual Report on Form 10-K
for the year ended December 31, 1997.
(2) 1995 includes the cumulative effect of the change in accounting method for
locomotive overhauls which decreased net income by $100 million. Additionally,
1995 includes an extraordinary loss on retirement of debt of $6 million (after
tax).
(3) 1994 includes the cumulative effect of the implementation of the accounting
standard for postemployment benefits.
(4) Earnings per share information for all periods has been restated to reflect
the three-for-one common stock split which was effected in the form of a stock
dividend of two additional shares of BNSF common stock for each share
outstanding or held in treasury on September 1, 1998 to stockholders of record
on August 17, 1998, and the Company's adoption in 1997 of the accounting
standard for earnings per share.
(5) Amounts for all years have been restated to reflect the three-for-one
common stock split discussed in note (4) above.
(6) 1997 and 1995 operating ratios exclude the pre-tax charges discussed in
note (1) above.
Burlington Northern Santa Fe Corporation
Adjusted Consolidated Statement of Income
(Unaudited. In millions, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
------ ------ ------ ------
Revenues $2,307 $2,138 $6,688 $6,226
------ ------ ------ ------
Operating Expenses
Compensation and benefits 695 661 2,087 2,006
Purchased services 243 217 707 644
Depreciation and amortization 211 195 618 574
Equipment rents 203 200 597 601
Fuel 178 173 541 555
Materials and other 163 151 548 517
------ ------ ------ ------
Total Operating Expenses 1,693 1,597 5,098 4,897
------ ------ ------ ------
Operating Income 614 541 1,590 1,329
Interest Expense 91 86 264 255
Other Income (Expense) - Net (19) (10) (13) (13)
------ ------ ------ ------
Income Before Income Taxes 504 445 1,313 1,061
Income Tax Expense 187 162 486 393
------ ------ ------ ------
Adjusted Net Income $ 317 $ 283 $ 827 $ 668
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Adjusted Diluted Earnings Per Share $ 0.66 $ 0.60 $ 1.73 $ 1.42
====== ====== ====== ======
Reported Earnings
Net Income $ 317 $ 283 $ 859 $ 668
====== ====== ====== ======
Basic Earnings Per Share $ 0.67 $ 0.61 $ 1.82 $ 1.44
====== ====== ====== ======
Diluted Earnings Per Share $ 0.66 $ 0.60 $ 1.80 $ 1.42
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Average Shares Outstanding
Basic 471.7 465.8 470.9 463.4
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Diluted 477.0 472.2 476.8 470.3
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Statement Explanation:
- ----------------------
1998 adjusted net income and diluted earnings per share exclude other income
attributable to a first quarter gain on pipeline partnership sale of $32 million
($67 million pre-tax) or $0.07 per share after tax. All per share information
has been restated to reflect the third quarter 1998 three-for-one stock split.
Burlington Northern Santa Fe Corporation
(Unaudited. In millions)
Condensed Consolidated Balance Sheet
September 30, December 31,
1998 1997
------------- ------------
Assets
Cash and cash equivalents $ 17 $ 31
Other current assets 1,199 1,203
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Total current assets 1,216 1,234
Properties and other assets 21,044 20,102
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Total Assets $22,260 $21,336
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Liabilities and Stockholders' Equity
Current liabilities $ 2,116 $ 2,060
Long-term debt and commercial paper 5,154 5,181
Deferred income taxes 5,479 5,175
Other liabilities 1,970 2,108
Stockholders' equity 7,541 6,812
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Total Liabilities and Stockholders' Equity $22,260 $21,336
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Condensed Consolidated Statement of Cash Flows
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1998 1997 1998 1997
----- ----- ------- -------
Cash Provided by Operating Activities $ 551 $ 477 $ 1,552 $ 1,110
Cash Used for Capital Expenditures (606) (631) (1,558) (1,476)
Net Proceeds of Borrowings 192 220 398 542
Dividends Paid (47) (46) (141) (138)
Purchase of BNSF Common Stock (104) - (110) -
Cash Used for Other Activities - (17) (155) (40)
----- ----- ------- -------
Increase (Decrease) in Cash and
Cash Equivalents $ (14) $ 3 $ (14) $ (2)
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Burlington Northern Santa Fe Corporation
Supplemental Data
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1998 1997 1998 1997
------ ------ ------ ------
Revenues (In millions)
Intermodal $ 659 $ 590 $1,825 $1,660
Coal 565 500 1,678 1,471
Agricultural Commodities 267 269 771 800
Automotive 86 101 278 315
Merchandise
Chemicals 213 200 632 614
Metals and Minerals 208 199 606 559
Forest Products 159 145 464 428
Consumer Goods 144 131 420 377
------ ------- ------ ------
Total Freight Revenues 2,301 2,135 6,674 6,224
Other Revenues 6 3 14 2
------ ------- ------ ------
Total Revenues $2,307 $2,138 $6,688 $6,226
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Operating ratio 73.4% 74.7% 76.2% 78.7%
Revenue ton miles (billions) 118.4 106.1 347.3 309.6
Freight revenue per thousand
revenue ton miles $19.44 $20.12 $19.22 $20.11
Cars/Units (thousands) 2,038 1,884 5,851 5,393
Average revenue per car/unit $1,129 $1,133 $1,141 $1,154
Employees (average) 45,055 44,060 44,612 43,135