FORT WORTH, Texas — BNSF Railway’s third-quarter profits increased on the strength of higher intermodal, industrial products, and coal volume.
The railroad’s operating income grew 12%, to $2.6 billion, as revenue increased 12%, to $5.5 billion, BNSF’s parent company, Berkshire Hathaway, reported on Saturday morning. The railroad’s operating ratio improved 0.2 points to 59.5% as productivity improvements helped offset fuel price increases and higher volume-related expenses.
Overall volume increased 4.4% for the quarter, while average revenue per unit increased 5.3%.
BNSF’s consumer products segment, which includes intermodal and automotive traffic, grew 2.5% for the quarter amid strong demand for both international and domestic intermodal service.
Industrial products volume surged 14.2% in the quarter. “The volume increases were primarily due to improvement in the U.S. industrial economy, driving higher volumes in the construction and building sectors, partially offset by lower petroleum volumes due to unfavorable market conditions in the energy sector,” Berkshire Hathaway said.\
Agricultural products volume fell 9.6% as grain exports declined.
Coal volume bounced back 12.2% due to increased electricity generation, higher natural gas prices, and improved export demand.
I’d like to see a little of the profit put into maintenance on the Lincoln to Denver line. Thanks goodness for the safety straps in the roomette upper level. A number of Yee Yaw spots in western NE. I don’t think W. Buffet has ridden over this stretch of his track lately. Amtrak conductor said there had been a slow order in one of the spots but it had been removed and he said it didn’t appear that the spot had been fixed.