OMAHA, Neb. — BNSF Railway’s profits declined in the third quarter due to a combination of lower volume and higher operating expenses.
The railway’s operating income fell 7.1%, to $2.1 billion, on revenue of $6.5 billion, a 16.8% increase, BNSF’s parent company, Berkshire Hathaway, reported on Saturday. Revenue rose due to higher fuel surcharge revenue and an increase in average revenue per carload and intermodal unit.
Expenses rose 32.8% as fuel prices shot up 80% and compensation and benefits rose 26.6%. BNSF’s operating ratio rose 8.2 points to 67.7% in the quarter.
Overall volume was down 5% as consumer products, industrial products, and coal traffic all declined.
Consumer products volume, which includes intermodal and automotive traffic, fell 7.2%. “The volume decreases were primarily due to lower international intermodal shipments resulting from supply chain disruptions,” Berkshire Hathaway reported.
Industrial products volume slumped 6.8%, driven by lower petroleum and building products shipments.
Agricultural volume was up 4.2% thanks as domestic grain, renewable diesel and oil and feedstock shipments all rose.
Coal volume declined 1.2% “primarily due to network challenges,” Berkshire Hathaway reported.
Share this article
