bnsf 1Q 2002 Investors Report

348 views
301 views

Published on

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
348
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

bnsf 1Q 2002 Investors Report

  1. 1. 1st Quarter 2002 Investors’ Report
  2. 2. BURLINGTON NORTHERN SANTA FE CORPORATION INVESTORS' REPORT - UNAUDITED 1st Quarter 2002 INDEX Page Earnings Press Release 1-3 Consolidated Income Information 4 Consolidated Balance Sheet Information 5 Consolidated Cash Flow Information 6 Operating Statistics 7 Revenue Statistics by Commodity 8 Capital Expenditures and Track Maintenance 9
  3. 3. NEWS Contact: Richard Russack FOR IMMEDIATE RELEASE (817) 867-6425 Burlington Northern Santa Fe Reports First Quarter 2002 Results • First-quarter 2002 earnings of $0.45 per diluted share compared with first-quarter 2001 earnings after extraordinary item of $0.34 per diluted share. First-quarter 2001 earnings included $0.10 per diluted share of non-recurring losses related to non-rail investments and a $0.02 per diluted share extraordinary charge. • Freight revenues were $2.14 billion, down 6 percent on 4 percent lower ton-miles. • First-quarter operating income of $368 million is $51 million lower than first- quarter 2001. FORT WORTH, Texas, April 23, 2002 - - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported first-quarter 2002 earnings of $0.45 per diluted share, compared with first-quarter 2001 earnings after extraordinary charge of $0.34 per diluted share. As previously reported, first-quarter 2001 earnings included $0.10 per diluted share of non- recurring losses related to non-rail investments and a $0.02 per diluted share extraordinary charge. “Earnings were impacted by softness in all major product sectors and the demand for coal was weakened because of mild winter weather,quot; said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. quot;Record on-time performance and a large reduction in personal injuries were highlights of the first quarter of the year as BNSF continues to focus on operating cost containment and improving customer service.” 1
  4. 4. Freight revenues for the 2002 first quarter were $2.14 billion, down 6 percent compared with the same 2001 period. Consumer Products revenues decreased $28 million, or 3 percent, to $778 million reflecting decreased automotive shipments and lower levels of less-than-truckload (LTL) traffic, partially offset by new truckload business and higher international volumes for intermodal. Industrial Products revenues fell $26 million, or 5 percent, to $491 million because of production cutbacks affecting most sectors. Coal revenues declined $18 million, or 3 percent, to $508 million, primarily reflecting decreased demand and lower burn rates as a result of a mild winter. Agricultural Products revenues decreased $53 million, or 13 percent, to $361 million, primarily due to decreased demand for soybeans moving through the Pacific Northwest to China as well as decreased corn and wheat exports. Operating expenses of $1.8 billion were $79 million or 4 percent lower than the same period in 2001. The decrease in first-quarter operating expenses primarily reflects reductions in fuel, compensation and benefits, and equipment rents. Operating income was $368 million for the 2002 first quarter compared with $419 million a year ago. The operating ratio increased to 82.8 percent for the 2002 first quarter compared with 81.5 percent in the same 2001 period. Common Stock Repurchases During the 2002 first quarter, BNSF repurchased 2.8 million shares of its common stock at an average price of $28.62 per share. This brings total repurchases under BNSF’s 120 million share-repurchase program to 105.9 million shares as of March 31, 2002, at an average price of $25.81 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 33,000 route miles covering 28 states and two Canadian provinces. 2
  5. 5. Consolidated financial statements follow. Statements made in this release concerning predictions or expectations of financial or operational performance, or concerning other future events or results, are quot;forward-looking statementsquot; within the meaning of the federal securities laws. Forward-looking statements involve a number of risks and uncertainties and actual results may differ materially from that projected or implied in those statements. Important factors that could cause such differences include, but are not limited to, economic and industry conditions: material adverse changes in economic or industry conditions, both within the United States and globally, customer demand, effects of adverse economic conditions affecting shippers, adverse economic conditions in the industries and geographic areas that produce and consume freight, competition and consolidation within the transportation industry, changes in fuel prices, changes in the securities and capital markets, and changes in labor costs and labor difficulties, including stoppages affecting either BNSF’s operations or our customers’ abilities to deliver goods to BNSF for shipment; legal and regulatory factors: developments and changes in laws and regulations and the ultimate outcome of shipper claims, environmental investigations or proceedings and other types of claims and litigation; and operating factors: technical difficulties, changes in operating conditions and costs, and competition and commodity concentrations, the Company’s ability to achieve its operational and financial initiatives and to contain costs, as well as natural events such as severe weather, floods and earthquakes or other disruptions of the Company’s operating systems, structures, or equipment. The Company cautions against placing undue reliance on forward-looking statements, which reflect its current beliefs and are based on information currently available to it as of the date a forward-looking statement is made. The Company undertakes no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs. In the event the Company does update any forward-looking statement, no inference should be made that the Company will make additional updates with respect to that statement, related matters, or any other forward-looking statement. 3
  6. 6. Burlington Northern Santa Fe Corporation Consolidated Income Information * (Dollars in millions, except per share data) Three Months Ended March 31, 2002 2001 Operating revenues Freight revenues $ 2,138 $ 2,263 Other revenues 25 30 Total operating revenues 2,163 2,293 Operating expenses Compensation and benefits 714 729 Purchased services 274 262 Depreciation and amortization 230 228 Equipment rents 176 187 Fuel 184 257 Materials and other 217 211 Total operating expenses 1,795 1,874 Operating income 368 419 Interest expense 109 120 Other (income) expense, net (16) 73 Income before income taxes and extraordinary charge 275 226 Income tax expense 103 86 Income before extraordinary charge 172 140 Extraordinary charge, net - 6 Net income $ 172 $ 134 Diluted earnings per share after extraordinary charge $ 0.45 $ 0.34 Diluted average shares outstanding (in millions) 385.5 394.1 Operating ratio 82.8% 81.5% * First quarter 2001 earnings include unusual items related to non-rail investment charges of $0.10 per diluted share and an extraordinary charge related to the early extinguishment of debt of $0.02 per diluted share. Excluding the unusual items, first quarter earnings per diluted share was $0.46. 4
  7. 7. Burlington Northern Santa Fe Corporation Consolidated Balance Sheet Information (Dollars in millions, except per share amounts) March 31, December 31, 2002 2001 Assets Current assets: Cash and cash equivalents $ 11 $ 26 Accounts receivable, net 155 172 Materials and supplies 199 191 Current portion of deferred income taxes 293 306 Other current assets 65 28 Total current assets 723 723 Property and equipment, net 23,215 23,110 Other assets 959 888 Total assets $ 24,897 $ 24,721 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and other current liabilities $ 1,809 $ 1,873 Long-term debt due within one year 290 288 Total current liabilities 2,099 2,161 Long-term debt and commercial paper 6,454 6,363 Deferred income taxes 6,791 6,731 Casualty and environmental liabilities 422 423 Employee merger and separation costs 197 216 Other liabilities 995 978 Total liabilities 16,958 16,872 Stockholders' equity: Common stock and additional paid-in capital 5,621 5,589 Retained earnings 5,174 5,048 Treasury stock (2,836) (2,745) Unearned compensation (19) (34) Accumulated other comprehensive loss (1) (9) Total stockholders' equity 7,939 7,849 Total liabilities and stockholders' equity $ 24,897 $ 24,721 Total debt to total capital 45.9% 45.9% Book value per share $ 20.69 $ 20.34 Common shares outstanding 383.8 385.8 5
  8. 8. Burlington Northern Santa Fe Corporation Consolidated Cash Flow Information (Dollars in millions) Three Months Ended March 31, 2002 2001 Operating activities Net income $ 172 $ 134 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 230 228 Deferred income taxes 68 39 Employee merger and separation costs paid (20) (17) Other - net (2) 67 Changes in working capital (91) (91) Net cash provided by operating activities 357 360 Investing activities and dividends paid Capital expenditures (260) (234) Other - net (109) (66) Dividends paid (46) (48) Free cash flow after dividends paid (58) 12 Financing activities Purchase of BNSF common stock (80) (65) Proceeds from stock options exercised 27 45 Other - net - (9) Net debt incurred $ (111) $ (17) 6
  9. 9. Burlington Northern Santa Fe Corporation Operating Statistics Three Months Ended March 31, 2002 2001 Cars/units (in thousands) 1,927 1,986 Average revenue per car/unit $ 1,109 $ 1,139 Revenue ton-miles (in millions) 120,122 125,727 Gross ton-miles (in millions) 212,461 223,206 RTM/GTM 0.565 0.563 Freight revenue/thousand RTM $ 17.80 $ 18.00 Operating expense/thousand RTM $ 14.94 $ 14.91 Freight revenue/thousand GTM $ 10.06 $ 10.14 Operating expense/thousand GTM $ 8.45 $ 8.40 Compensation and benefits/thousand GTM $ 3.36 $ 3.27 Average employees 37,026 38,270 Period end employees 37,470 38,962 Thousand RTM/average employee 3,244 3,285 Gallons of fuel used (in millions) 283 297 Average price per gallon of fuel (cents) (a) 65.0 86.5 GTM/gallon of fuel 751 752 Freight train miles (in millions) 35 36 GTM/freight train hours (in thousands) 148 146 Route Miles Operated 33,100 33,340 (a) Includes handling, taxes and hedge effect. 7
  10. 10. Burlington Northern Santa Fe Corporation Revenue Statistics by Commodity Three Months Ended March 31, Percent Revenues (in millions) 2002 2001 Change Intermodal $ 633 $ 629 0.6 % Automotive 81 111 (27.0) Other Consumer 64 66 (3.0) Total Consumer 778 806 (3.5) Industrial 491 517 (5.0) Coal 508 526 (3.4) Agricultural Products 361 414 (12.8) Total freight revenue 2,138 2,263 (5.5) Other revenue 25 30 (16.7) Total revenues $ 2,163 $ 2,293 (5.7) % Cars/units (in thousands) Intermodal 804 806 (0.2) % Automotive 37 53 (30.2) Other Consumer 39 41 (4.9) Total Consumer 880 900 (2.2) Industrial 332 350 (5.1) Coal 511 516 (1.0) Agricultural Products 204 220 (7.3) Total cars/units 1,927 1,986 (3.0) % Average revenue per car/unit Intermodal $ 787 $ 780 0.9 % Automotive 2,189 2,094 4.5 Other Consumer 1,641 1,610 1.9 Total Consumer 884 896 (1.3) Industrial 1,479 1,477 0.1 Coal 994 1,019 (2.5) Agricultural Products 1,770 1,882 (6.0) Average revenue per car/unit $ 1,109 $ 1,139 (2.6) % Revenue ton-miles (in millions) Intermodal 20,847 21,776 (4.3) % Automotive 1,232 1,511 (18.5) Other Consumer 2,978 3,032 (1.8) Total Consumer 25,057 26,319 (4.8) Industrial 22,188 24,629 (9.9) Coal 50,573 51,470 (1.7) Agricultural Products 22,304 23,309 (4.3) Total revenue ton-miles 120,122 125,727 (4.5) % Freight revenue per thousand ton-miles Intermodal $ 30.36 $ 28.89 5.1 % Automotive 65.75 73.46 (10.5) Other Consumer 21.49 21.77 (1.3) Total Consumer 31.05 30.62 1.4 Industrial 22.13 20.99 5.4 Coal 10.04 10.22 (1.8) Agricultural Products 16.19 17.76 (8.8) Freight revenue per thousand ton-miles $ 17.80 $ 18.00 (1.1) % 8
  11. 11. Burlington Northern Santa Fe Corporation Capital Expenditures and Track Maintenance Three Months Ended March 31, 2002 2001 Capital expenditures (in millions) Maintenance of way Rail $ 43 $ 40 Ties 54 43 Surfacing 23 17 Other 61 64 Total maintenance of way 181 164 Mechanical 28 26 Information services 18 9 Other 6 9 Total maintenance of business 233 208 New locomotives/freight cars - - Terminal and line expansion 22 23 Other 5 3 Total capital expenditures $ 260 $ 234 Operating lease commitments $ 6 $ - Total capital commitments $ 266 $ 234 Track maintenance Track miles of rail laid Maintenance of business 90 72 Expansion projects - - Total 90 72 Cross ties inserted (thousands) Maintenance of business 478 330 Expansion projects 1 1 Total 479 331 Track resurfaced (miles) 1,548 1,252 9

×