UPDATE:Burlington Northern 1Q Net -36% On Falling Revenue, Charges
23 Abril 2009 - 5:59PM
Noticias Dow Jones
Burlington Northern Santa Fe Corp. (BNI) posted a 36% slide in
first-quarter net income, hurt by falling freight revenue amid the
economic downturn as well as one-time charges stemming mainly from
a coal rate settlement.
The No. 2 U.S. railroad by revenue is the latest
freight-transport company to reflect the impact of a withering
slowdown in freight demand.
Burlington Northern's chief rivals, including Union Pacific
Corp. (UNP), CSX Corp. (CSX) and Norfolk Southern Corp. (NSC), also
have posted declining first-quarter profits amid falling overall
volumes.
Some of the transport companies have voiced optimism that
conditions will improve late this year, helped in part by
government stimulus spending, although Burlington Northern Chief
Executive Matt Rose offered no full-year forecast.
On a conference call with analysts late Thursday, he said the
railroad will earn "about" $1 a share in the second quarter if
recent volume trends hold steady. The company's first-quarter
volume slipped 14%, as measured by rail car loads.
Wall Street currently expects the railroad to earn $1.12 a share
in the second quarter, according to Thomson Reuters.
Burlington Northern posted first-quarter net income of $293
million, or 86 cents a share, down from $455 million, or $1.30 a
share, a year earlier.
The results included a $96 million, or 19-cent-a-share, charge
related to an unfavorable coal rate case decision, as well as an
eight-cent-a-share loss to unwind interest rate hedges on debt the
company no longer expects to be issued.
Excluding those items, Burlington Northern would have earned
$1.13 a share, above Wall Street's consensus forecast for profit of
96 cents a share. But revenue fell 20% to $3.42 billion, compared
with $3.68 billion expected by Wall Street.
Still, Burlington Northern shares were up 1.7%, or $1.13, at
$68.98 in recent after-hours trading, after closing Thursday's
regular session up 2.1% at $67.85.
The railroad reported a 17% decline in total first-quarter
freight revenue, attributable to the slide in overall volume.
Revenue from consumer and industrial products decreased 24% and
23%, respectively, while revenue from shipments of agricultural
products was off 22%.
Burlington Northern said revenue from coal shipments grew about
1%, excluding the impact of the $96 million rate-related charge,
primarily because of improved yields that offset slightly lower
unit volumes.
The small increase in coal revenue was in contrast to some
rivals that have reported weakness in the once-reliable product,
although Burlington Northern said coal demand appears likely to be
down going forward.
-By Bob Sechler, Dow Jones Newswires; 512-394-0285;
bob.sechler@dowjones.com
(John Kell contributed to this report.)