OMAHA, Neb. — BNSF Railway’s profits, revenue, and volume all increased for the third quarter, thanks to surging intermodal and agricultural shipments.
BNSF’s parent, Berkshire Hathaway, reported on Saturday that the railroad’s quarterly operating income increased 13.4%, to $2 billion, as revenue grew 2.8%, to $5.9 billion. Expenses declined 2% for the quarter. The railway’s operating ratio was 65%, a 3.4-point improvement compared to a year ago, according to Berkshire Hathaway data.
Overall volume was up 8.3% for the quarter, but average revenue per carload and intermodal unit declined 5.2% in the quarter due to lower fuel surcharge revenue and business mix changes that included declines in coal and carload traffic.
Consumer products volume, which includes intermodal and automotive traffic, was up 16.7%. “The volume increases were primarily due to higher intermodal shipments from west coast imports and volumes from a new intermodal customer,” Berkshire said.
Industrial products volume declined 1.9%. “The volume decreases were primarily attributable to lower aggregates, taconite, minerals, and waste shipments, partially offset by higher volumes in petroleum products,” Berkshire said.
Agricultural products shipments surged 14.1% in the quarter due to increased grain shipments.
Coal volume declined 12.5% in the quarter, which Berkshire attributed to lower prices for natural gas, which displaced coal as a fuel used to generate electricity.
