INTERNATIONAL COAL NEWS

BNSF charges ahead in second quarter

IN what is turning out to be a very strong year for Texas-based rail force Burlington Northern Sa...

Donna Schmidt

Other highlights for the company included freight revenues, which increased 18% to more than $3.5 billion from just over $3 billion in the second quarter of 2005. Revenue for the first six months of 2006 echoed the same trend, increasing $1 billion over the same period last year.

The record operating income was an increase over the previous second quarter by 22%, or $153 million. Income from operations increased by a similar margin over the first six months as well, topping out at over $1.6 billion, a $311 million increase over the first six months of 2005.

Net income also showed significant increases. For the three months ended June 30, 2006, net income increased 28% to $470 million from $366 million quarter-on-quarter.

Six-month results also increased 28%, from $687 million in 2005 to $880 million in net profits for the first half of 2006.

As demand for coal continues to rise and the industry continues its record upswing, the company is recording outstanding results.

“BNSF continues to experience record demand for rail service across all of its business units,” company president Matthew Rose said.

“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.”

In May, the company announced it was joining forces with Union Pacific to expand their jointly owned line in the Southern Powder River Basin.

The $100 million project, which will be done over the next two years, will add more than 40 miles of third and fourth main line tracks.

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