bnsf 2Q 2001 Investors Report

463 views
423 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
463
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

bnsf 2Q 2001 Investors Report

  1. 1. 2nd Quarter 2001 Investors’ Report
  2. 2. BURLINGTON NORTHERN SANTA FE CORPORATION INVESTORS' REPORT - UNAUDITED 2nd Quarter 2001 INDEX Page Earnings Press Release 1-2 Consolidated Income Information 3 Consolidated Balance Sheet Information 4 Consolidated Cash Flow Information 5 Operating Statistics 6 Revenue Statistics by Commodity 7 Capital Expenditures and Track Maintenance 8
  3. 3. NEWS Contact: Richard Russack FOR IMMEDIATE RELEASE (817) 352-6425 Burlington Northern Santa Fe Reports Second Quarter 2001 Results • Earnings were $0.50 per diluted share compared with second quarter 2000 earnings of $0.53 per diluted share. • Freight revenues were $2.24 billion, even with last year on 2 percent higher ton-miles. • Flooding conditions in the upper Midwest reduced operating income by approximately $30 million. • Fuel expenses were $27 million higher than 2000. • Second quarter operating income of $428 million is $55 million lower than second quarter 2000. FORT WORTH, Texas, July 24, 2001 - - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported second quarter 2001 earnings of $0.50 per diluted share, compared with second quarter 2000 earnings of $0.53 per diluted share. Freight revenues for the 2001 second quarter were $2.24 billion, even with last year on 2 percent higher ton-miles compared with the same 2000 period. Agricultural Commodities revenues increased $13 million, or 5 percent, to $278 million, primarily due to an increased demand for corn, milo and meal, partially offset by a decline in wheat exports. Coal revenues increased $7 million, or 1 percent, to $532 million, on 8 percent higher volume as a result of increased demand for electricity, tight Eastern coal supplies and high natural gas prices. These volume increases were offset by lower revenue per unit on certain contract renewals. Industrial products revenues fell $7 million or 1 percent, to $587 million because of continued production cutbacks affecting most sectors. Consumer products revenues decreased $9 million, or 1 percent, 1
  4. 4. to $844 million reflecting decreases in automotive and domestic intermodal shipments resulting from the current economic slowdown, offset by double-digit growth in the truckload business and increased international revenue. Operating expenses of $1.84 billion were $65 million higher than the 2000 second quarter. Fuel expense was $27 million higher than 2000 as the average cost of diesel fuel per gallon increased 7 cents. Expenses other than fuel were higher primarily due to flooding conditions in the upper Midwest, higher wages and increased health and welfare costs. Operating income was $428 million for the second quarter 2001 compared with $483 million a year ago. The operating ratio increased to 80.9 percent for the second quarter 2001 compared with 78.4 percent in 2000. Common Stock Repurchases During the second quarter, BNSF repurchased 3.1 million shares at an average price of $29.54 per share. This brings total repurchases under BNSF’s 120 million share-repurchase program to 97.0 million shares as of June 30, 2001 at an average price of $25.69 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. 2
  5. 5. Burlington Northern Santa Fe Corporation Consolidated Income Information * (in millions, except per share data) Three Months Six Months Ended June 30, Ended June 30, 2001 2000 2001 2000 Operating revenues Freight revenues $ 2,241 $ 2,237 $ 4,504 $ 4,479 Other revenues 30 24 60 46 Total operating revenues 2,271 2,261 4,564 4,525 Operating expenses Compensation and benefits 694 677 1,423 1,375 Purchased services 274 250 536 508 Depreciation and amortization 230 223 458 445 Equipment rents 190 176 377 355 Fuel 246 219 503 430 Materials and other 209 233 420 419 Total operating expenses 1,843 1,778 3,717 3,532 Operating income 428 483 847 993 Interest expense 115 115 235 219 Other income (expense) - net (5) (8) (78) (23) Income before income taxes 308 360 534 751 Income tax expense 113 137 199 285 Income before extraordinary charge 195 223 335 466 Extraordinary charge, net of tax - - (6) - Net income $ 195 $ 223 $ 329 $ 466 Diluted earnings per share after extraordinary charge $ 0.50 $ 0.53 $ 0.84 $ 1.08 Diluted average shares outstanding 393.8 418.4 393.9 432.0 Operating ratio 80.9% 78.4% 81.2% 77.8% Note: Certain prior-period revenues and expenses have been reclassified to conform with the current-period presentation. * Year-to-date 2001 includes unusual items of $0.12 per share comprised of $64 million pre-tax ($40 million after-tax) of non- recurring losses related to non-rail investments and an extraordinary charge of $6 million after-tax for a loss on early extinguishment of debt. Second quarter and year-to-date 2000 earnings include unusual items of $42 million pre-tax ($26 million after-tax) related to reduction and redeployment of employees. Excluding the unusual items, second quarter and year-to-date (i) earnings per share are $0.60 and $1.14, respectively, and (ii) operating ratios are 76.5% and 76.9%, respectively. 3
  6. 6. Burlington Northern Santa Fe Corporation Consolidated Balance Sheet Information (in millions, except per share amounts) June 30, December 31, 2001 2000 Assets Current assets Cash and cash equivalents $ 26 $ 11 Accounts receivable, net 262 314 Materials and supplies 214 220 Current portion of deferred income taxes 296 299 Other current assets 93 132 Total current assets 891 976 Property and equipment, net 22,590 22,369 Other assets 1,021 1,030 Total assets $ 24,502 $ 24,375 Liabilities and stockholders' equity Current liabilities Accounts payable and other current liabilities $ 1,851 $ 1,954 Long-term debt due within one year 236 232 Total current liabilities 2,087 2,186 Long-term debt and commercial paper 6,516 6,614 Deferred income taxes 6,547 6,422 Casualty and environmental liabilities 422 430 Employee merger and separation costs 233 262 Other liabilities 982 981 Total liabilities 16,787 16,895 Stockholders' equity Common stock and additional paid-in capital 5,575 5,433 Retained earnings 4,739 4,505 Treasury stock (2,581) (2,413) Unearned compensation (42) (35) Other 24 (10) Total stockholders' equity 7,715 7,480 Total liabilities and stockholders' equity $ 24,502 $ 24,375 Total debt to total capital 46.7% 47.8% Book value per share $ 19.73 $ 19.10 Common shares outstanding 391.1 391.6 4
  7. 7. Burlington Northern Santa Fe Corporation Consolidated Cash Flow Information (in millions) Three Months Six Months Ended June 30, Ended June 30, 2001 2000 2001 2000 Operating activities Net income $ 195 $ 223 $ 329 $ 466 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 230 223 458 445 Deferred income taxes 68 65 107 121 Employee merger and separation costs paid (10) (12) (27) (32) Other - net (8) 30 59 48 Changes in working capital 96 (15) 5 6 Net cash provided by operating activities 571 514 931 1,054 Investing activities and dividends paid Capital expenditures (403) (384) (637) (636) Other - net 50 132 (16) (108) Dividends paid (48) (53) (96) (108) Free cash flow after dividends paid 170 209 182 202 Financing activities Purchase of BNSF common stock (92) (520) (157) (1,103) Proceeds from stock options exercised 56 2 101 3 Other - net (8) 18 (17) 18 Net debt paid (incurred) $ 126 $ (291) $ 109 $ (880) 5
  8. 8. Burlington Northern Santa Fe Corporation Operating Statistics Three Months Six Months Ended June 30, Ended June 30, 2001 2000 2001 2000 Cars/units (thousands) 2,016 2,012 4,002 4,000 Average revenue per car/unit $ 1,112 $ 1,112 $ 1,125 $ 1,120 Revenue ton miles (millions) 122,510 119,680 248,237 240,684 Gross ton miles (millions) 220,109 215,233 443,315 430,398 RTM/GTM 0.56 0.56 0.56 0.56 Freight revenue/thousand RTM $ 18.29 $ 18.69 $ 18.14 $ 18.61 Operating expense/thousand RTM * $ 15.04 $ 14.86 $ 14.97 $ 14.67 Freight revenue/thousand GTM $ 10.18 $ 10.39 $ 10.16 $ 10.41 Operating expense/thousand GTM * $ 8.37 $ 8.26 $ 8.38 $ 8.21 Compensation and benefits/thousand GTM $ 3.15 $ 3.15 $ 3.21 $ 3.19 Employees (a) 39,747 40,005 39,008 39,623 Thousand RTM/average employee 3,082 2,992 6,364 6,074 Gallons of fuel used (millions) 293 286 590 578 Average price per gallon of fuel (cents) (b) 84.0 76.6 85.3 74.4 GTM/gallon of fuel 751 753 751 745 Freight train miles (millions) 36 35 72 70 GTM/freight train hours (thousands) 138 152 142 153 * Adjusted for unusual items, second quarter and year-to-date 2000 (i) operating expense/thousand RTM are $14.51 and $14.50, respectively, and (ii) operating expense/thousand GTM are $8.07 and $8.11, respectively. (a) Represents average mid-month count for the period. (b) Includes handling, taxes and hedge effect. 6
  9. 9. Burlington Northern Santa Fe Corporation Revenue Statistics by Commodity Three Months Six Months Ended June 30, Percent Ended June 30, Percent Revenues (in millions) 2001 2000 Change 2001 2000 Change Intermodal $ 659 $ 654 0.8 % $ 1,290 $ 1,273 1.3 % Automotive 115 134 (14.2) 225 258 (12.8) Other Consumer 70 65 7.7 136 123 10.6 Total Consumer 844 853 (1.1) 1,651 1,654 (0.2) Industrial 587 594 (1.2) 1,156 1,181 (2.1) Coal 532 525 1.3 1,058 1,054 0.4 Agricultural Commodities 278 265 4.9 639 590 8.3 Total freight revenue 2,241 2,237 0.2 4,504 4,479 0.6 Other revenue 30 24 25.0 60 46 30.4 Total revenues $ 2,271 $ 2,261 0.4 % $ 4,564 $ 4,525 0.9 % Cars/units (in thousands) Intermodal 834 855 (2.5) % 1,641 1,655 (0.8) % Automotive 56 70 (20.0) 109 137 (20.4) Other Consumer 42 41 2.4 82 77 6.5 Total Consumer 932 966 (3.5) 1,832 1,869 (2.0) Industrial 402 409 (1.7) 781 812 (3.8) Coal 527 487 8.2 1,043 994 4.9 Agricultural Commodities 155 150 3.3 346 325 6.5 Total cars/units 2,016 2,012 0.2 % 4,002 4,000 0.1 % Average revenue per car/unit Intermodal $ 790 $ 765 3.3 % $ 786 $ 769 2.2 % Automotive 2,054 1,914 7.3 2,064 1,883 9.6 Other Consumer 1,667 1,585 5.2 1,659 1,597 3.9 Total Consumer 906 883 2.6 901 885 1.8 Industrial 1,460 1,452 0.6 1,480 1,454 1.8 Coal 1,009 1,078 (6.4) 1,014 1,060 (4.3) Agricultural Commodities 1,794 1,767 1.5 1,847 1,815 1.8 Average revenue per car/unit $ 1,112 $ 1,112 -% $ 1,125 $ 1,120 0.4 % Revenue ton-miles (in millions) Intermodal 22,027 23,122 (4.7) % 43,930 44,740 (1.8) % Automotive 1,711 2,086 (18.0) 3,229 4,113 (21.5) Other Consumer 2,938 2,753 6.7 5,972 5,760 3.7 Total Consumer 26,676 27,961 (4.6) 53,131 54,613 (2.7) Industrial 27,260 27,811 (2.0) 53,912 54,519 (1.1) Coal 52,775 50,187 5.2 104,245 98,809 5.5 Agricultural Commodities 15,799 13,721 15.1 36,949 32,743 12.8 Total revenue ton-miles 122,510 119,680 2.4 % 248,237 240,684 3.1 % Freight revenue per thousand ton-miles Intermodal $ 29.92 $ 28.28 5.8 % $ 29.36 $ 28.45 3.2 % Automotive 67.21 64.24 4.6 69.68 62.73 11.1 Other Consumer 23.83 23.61 0.9 22.77 21.35 6.7 Total Consumer 31.64 30.51 3.7 31.07 30.29 2.6 Industrial 21.53 21.36 0.8 21.44 21.66 (1.0) Coal 10.08 10.46 (3.6) 10.15 10.67 (4.9) Agricultural Commodities 17.60 19.31 (8.9) 17.29 18.02 (4.1) Freight revenue per thousand ton-miles $ 18.29 $ 18.69 (2.1) % $ 18.14 $ 18.61 (2.5) % 7
  10. 10. Burlington Northern Santa Fe Corporation Capital Expenditures and Track Maintenance Three Months Six Months Ended June 30, Ended June 30, 2001 2000 2001 2000 Capital expenditures (in millions) Maintenance of way Rail $ 69 $ 74 $ 109 $ 114 Ties 82 83 125 124 Surfacing 40 43 56 70 Other 79 70 142 127 Total maintenance of way 270 270 432 435 Mechanical 44 48 70 90 Information services 22 14 31 27 Other 18 32 27 54 Total maintenance of business 354 364 560 606 Terminal and line expansion 38 18 61 26 Other 11 2 16 4 Total capital expenditures $ 403 $ 384 $ 637 $ 636 Operating lease commitments $ 97 $ 97 $ 97 $ 239 Track maintenance Track miles of rail laid Maintenance of business 264 260 345 372 Expansion projects 12 11 12 11 Total 276 271 357 383 Cross ties inserted (thousands) Maintenance of business 846 937 1,176 1,351 Expansion projects 39 31 40 33 Total 885 968 1,216 1,384 Track resurfaced (miles) 3,519 4,122 4,771 5,798 8

×