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The Fort Worth, Texas-based company's net income for the first quarter plunged to $293 million or $0.86 per share from $455 million or $1.30 per share in the year-ago quarter.
Results for the quarter included a $0.19 per share charge related to an unfavorable coal rate case decision and $0.08 per share loss on unwinding interest rate hedges on debt no longer expected to be issued.
On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.96 per share for the quarter. Analysts' estimates typically exclude special items.
In the previous fourth quarter, Burlington Northern Santa Fe reported a net income of $615 million or $1.79 per share, compared to net income of $517 million or $1.46 per share in the same quarter last year.
Total operating revenues for the quarter under review decreased to $3.42 billion from $4.30 billion in the prior-year quarter. Analysts expected the company to report revenue of $3.68 billion for the quarter.
For the sequentially preceding fourth quarter, operating revenues were $4.37 billion, an increase from $4.24 billion in the previous-year quarter.
Freight revenues for the first quarter under review declined 20% from a year ago to $3.31 billion, as loads handle decreased 14%. The decrease in freight revenues included a reduction in fuel surcharges of about $325 million and a $96 million charge related to the unfavorable coal rate case decision.
Coal revenues for the quarter were $863 million. Excluding the charge related to the unfavorable coal rate decision, coal revenues increased 1% year-over-year, reflecting improved yields on slightly lower unit volumes.
Agricultural Products revenue for the quarter decreased 22% to $187 million, while Industrial Products revenue was $719 million, down 23% from the previous year. Consumer Products revenue dropped 24% to $1.05 billion from the previous year on lower international intermodal, domestic intermodal and automotive volumes due to economic conditions.
Operating expenses for the quarter decreased to $2.76 billion from $3.39 billion in the same quarter last year, driven by strong cost controls, decreased unit volumes and lower fuel prices, which decreased fuel expenses by about $300 million.
Interest expense for the quarter rose 48% to $198 million from $134 million in the year-ago quarter, primarily due to a $43 million loss on unwinding interest rate hedges on debt, and the unfavorable coal rate case decision further increased interest expense by $9 million.
Amongst others in the sector, Omaha, Nebraska-based rail transportation provider Union Pacific Corp. (UNP, reported a decline in first-quarter profit. Union Pacific's net income dropped 18% to $362 million from the previous year, while revenues declined 20% year-over-year to $3.4 billion.
Another competitor, Norfolk, Virginia-based Norfolk Southern Corp. (NSC), reported net income for the first quarter of $177 million or $0.47 per share, compared to $291 million or $0.76 per share for the year-ago quarter. Operating revenues for the quarter declined to $1.94 billion from $2.50 billion in the same quarter last year.
Burlington Northern Santa Fe also declared a quarterly dividend of $0.40 per share payable on July 1 to stockholders of record on June 10, 2009
BNI closed Thursday's regular trading at $67.85, up $1.42 or 2.14%, on a volume of 2.90 million shares. In after hours, BNI traded at $69.01, up $1.16 or 1.71% on the NYSE. In the past 52 weeks, the stock trended in a broad range of $50.86 - $114.58, with a three-month average volume of 3.74 million shares.
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