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. 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,
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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.
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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.
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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
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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)
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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.
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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
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