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Rail News: BNSF Railway
BNSF Railway Co.
reported third-quarter revenue rose 16 percent to $6.1 billion from $5.3 billion, while operating income increased 9 percent to $2.1 billion from $1.9 billion in the same quarter a year ago.The Class I's net income in the quarter surged 34 percent to $1.4 billion from $1 billion in Q3 2017, according to BNSF's Q3 performance summary
.BNSF posted an operating ratio of 64.5 percent for the quarter, compared with 62.4 percent a year ago. Expenses during the quarter increased 20 percent to $4 billion from $3.4 billion in Q3 2017.Average revenue per car/unit rose 11 percent during the quarter as a result of business mix changes, higher fuel surcharges driven primarily by higher fuel prices and increased rates per car/unit.Also during Q3 2018 compared with last year:
• Consumer product volumes rose 1 percent due to higher intermodal volumes;
• Industrial products volume increased 13 percent primarily due to strength in the industrial and energy sectors;
• Agricultural products volume rose 16 percent due to strong export and domestic grain shipments, as well as higher fertilizer and other grain products; and
• Coal volume fell 5 percent, primarily due to plant retirements combined with competition from natural gas and renewables, partially offset by market share gains and improved export volumes.
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