TEXAS-headquartered Burlington Northern Santa Fe LLC (BNSF) achieved 36
TEXAS-headquartered Burlington Northern Santa Fe LLC (BNSF) achieved 36.6 per cent higher second quarter net profit US$1.3 billion on revenues of $5.9 billion, up 12 per cent year on year. The strong results came on the back of increased volumes, higher average revenue per car/unit, a tight trucking market and a lower income tax rate of 20.9 per cent.
Revenues from consumer products amounted to $2 billion, up 13.6 per cent from last year's second quarter amid a 4.7 per cent boost in volumes, reported American Shipper.
Revenues from industrial products rose by 16.3 per cent to $1.5 billion on 10.4 per cent volume growth. Volumes were higher mainly due to the energy and industrial sectors, which drove up demand for sand, petroleum products, steel and plastics.
Revenues from agricultural products rose by 10.1 per cent to $1.2 billion, however, revenues from coal during the quarter slipped 0.1 per cent year on year to $911 million.
As for the six other class I railways CSX fared the best in terms of profit growth, with second quarter net earnings surging 72 per cent year on year to $877 million; followed by Norfolk Southern, with net income up 42.9 per cent to $710 million.
Union Pacific's Q2 profit rose by 29.2 per cent to $1.51 billion; Canadian National, up 27.1 per cent to C$1.3 billion (US$995.8 million); Kansas City Southern, up 10.4 per cent to $148.7 million; and Canadian Pacific's net income of C$436 million was down 9.2 per cent.
