Burlington Northern Santa Fe Corp. (BNI, Financial) filed Quarterly Report for the period ended 2009-09-30.
Burlington North/Santa Fe through its subsidiary The Burlington Northern and Santa Fe Railway Company operates one of the largest railroad networks in North America. This vast network covers the western two-thirds of the United States stretching from major Pacific Northwest and Southern California ports to the Midwest Southeast and Southwest and from the Gulf of Mexico to Canada. Burlington Northern Santa Fe Corp. has a market cap of $27.61 billion; its shares were traded at around $84.62 with a P/E ratio of 14.2 and P/S ratio of 1.6. The dividend yield of Burlington Northern Santa Fe Corp. stocks is 1.9%. Burlington Northern Santa Fe Corp. had an annual average earning growth of 8.1% over the past 10 years. GuruFocus rated Burlington Northern Santa Fe Corp. the business predictability rank of 2.5-star.
Fuel expenses of $606 million for the third quarter of 2009 were $743 million, or 55 percent lower than the third quarter of 2008. The decrease in fuel expense was primarily due to a decrease in the average all-in cost per gallon of locomotive diesel fuel. The average all-in cost per gallon of locomotive diesel fuel decreased by $1.73 to $1.99, resulting in a $500 million decrease in expense. The decrease in the average all-in cost reflected a decrease in the average purchase price per gallon of $1.88, or a $546 million decrease in locomotive fuel expense, offset by an increase in the hedge loss of 15 cents per gallon, or $46 million (third quarter 2009 loss of $35 million less third quarter 2008 benefit of $11 million). Locomotive fuel consumption in the third quarter of 2009 decreased by 59 million gallons to 290 million gallons, when compared with consumption in the same 2008 period, resulting in a decrease in expense of $221 million. The remainder of the decrease was primarily due to lower non-locomotive fuel prices.
Coal revenues of $2,678 million for the first nine months of 2009 declined $225 million, or 8 percent, compared with the same 2008 period. The decline was due to decreased fuel surcharges, lower unit volumes and a $66 million loss in excess of amounts previously accrued related to the unfavorable coal rate case decision during the first quarter of 2009 (see Note 5 to the Consolidated Financial Statements under the heading Coal Rate Case Decision.) These declines were partially offset by improved yields from renewed contracts and a $22 million favorable coal rate case decision during the second quarter of 2009.
Fuel expenses of $1,729 million for the first nine months of 2009 were $1,956 million, or 53 percent lower than the first nine months of 2008. The decrease in fuel expense was primarily due to a decrease in the average all-in cost per gallon of locomotive diesel fuel. The average all-in cost per gallon of locomotive diesel fuel decreased by $1.50 to $1.83, resulting in a $1,340 million decrease in expense. The decrease in the average all-in cost reflected a decrease in the average purchase price per gallon of $1.75, or a $1,569 million decrease in locomotive fuel expense, offset by an increase in the hedge loss of 25 cents per gallon, or $229 million (first nine months 2009 loss of $185 million less first nine months 2008 benefit of $44 million). Locomotive fuel consumption for the first nine months of 2009 decreased by 168 million gallons to 900 million gallons, when compared with consumption in the same 2008 period, resulting in a decrease in expense of $566 million. The remainder of the decrease was primarily due to lower non-locomotive fuel prices.
Interest expense of $462 million for the first nine months of 2009 was $66 million, or 17 percent higher than the first nine months of 2008. This increase was primarily attributable to a net $32 million loss for terminated treasury locks (see Note 2 to the Consolidated Financial Statements). The unfavorable coal rate case decision further increased interest expense by $8 million (see Note 5 to the Consolidated Financial Statements under the heading Coal Rate Case Decision). The remainder of the increase was primarily due to a higher average debt balance. Favorable tax settlements impacted interest expense for both of the nine month periods ended September 30, 2009 and 2008.
Net cash provided by financing activities during the first nine months of 2009 was $9 million, primarily related to net debt borrowings of $352 million, proceeds from a facility financing obligation of $51 million, proceeds from stock options exercised of $26 million and excess tax benefits from equity compensation plans of $18 million, partially offset by dividend payments of $409 and common stock repurchases to satisfy tax withholding obligations for stock option exercises of $15 million.
Read the The complete ReportBNI is in the portfolios of Warren Buffett of Berkshire Hathaway, Tweedy Browne of Tweedy Browne CO LLC, Prem Watsa of Fairfax Financial Holdings, Inc., Wallace Weitz of Weitz Wallace R & Co, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, George Soros of Soros Fund Management LLC, Ron Baron of Baron Funds, Chris Davis of Davis Selected Advisers, PRIMECAP Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Burlington North/Santa Fe through its subsidiary The Burlington Northern and Santa Fe Railway Company operates one of the largest railroad networks in North America. This vast network covers the western two-thirds of the United States stretching from major Pacific Northwest and Southern California ports to the Midwest Southeast and Southwest and from the Gulf of Mexico to Canada. Burlington Northern Santa Fe Corp. has a market cap of $27.61 billion; its shares were traded at around $84.62 with a P/E ratio of 14.2 and P/S ratio of 1.6. The dividend yield of Burlington Northern Santa Fe Corp. stocks is 1.9%. Burlington Northern Santa Fe Corp. had an annual average earning growth of 8.1% over the past 10 years. GuruFocus rated Burlington Northern Santa Fe Corp. the business predictability rank of 2.5-star.
Highlight of Business Operations:
Coal revenues of $940 million for the third quarter of 2009 declined $107 million, or 10 percent, compared with the same 2008 period due to decreased fuel surcharges and lower unit volumes driven by soft demand due to economic conditions and mild summer weather, partially offset by a $30 million favorable adjustment to amounts previously accrued related to an unfavorable coal rate case decision in the first quarter of 2009 (see Note 5 to the Consolidated Financial Statements under the heading Coal Rate Case Decision) and improved yields.Fuel expenses of $606 million for the third quarter of 2009 were $743 million, or 55 percent lower than the third quarter of 2008. The decrease in fuel expense was primarily due to a decrease in the average all-in cost per gallon of locomotive diesel fuel. The average all-in cost per gallon of locomotive diesel fuel decreased by $1.73 to $1.99, resulting in a $500 million decrease in expense. The decrease in the average all-in cost reflected a decrease in the average purchase price per gallon of $1.88, or a $546 million decrease in locomotive fuel expense, offset by an increase in the hedge loss of 15 cents per gallon, or $46 million (third quarter 2009 loss of $35 million less third quarter 2008 benefit of $11 million). Locomotive fuel consumption in the third quarter of 2009 decreased by 59 million gallons to 290 million gallons, when compared with consumption in the same 2008 period, resulting in a decrease in expense of $221 million. The remainder of the decrease was primarily due to lower non-locomotive fuel prices.
Coal revenues of $2,678 million for the first nine months of 2009 declined $225 million, or 8 percent, compared with the same 2008 period. The decline was due to decreased fuel surcharges, lower unit volumes and a $66 million loss in excess of amounts previously accrued related to the unfavorable coal rate case decision during the first quarter of 2009 (see Note 5 to the Consolidated Financial Statements under the heading Coal Rate Case Decision.) These declines were partially offset by improved yields from renewed contracts and a $22 million favorable coal rate case decision during the second quarter of 2009.
Fuel expenses of $1,729 million for the first nine months of 2009 were $1,956 million, or 53 percent lower than the first nine months of 2008. The decrease in fuel expense was primarily due to a decrease in the average all-in cost per gallon of locomotive diesel fuel. The average all-in cost per gallon of locomotive diesel fuel decreased by $1.50 to $1.83, resulting in a $1,340 million decrease in expense. The decrease in the average all-in cost reflected a decrease in the average purchase price per gallon of $1.75, or a $1,569 million decrease in locomotive fuel expense, offset by an increase in the hedge loss of 25 cents per gallon, or $229 million (first nine months 2009 loss of $185 million less first nine months 2008 benefit of $44 million). Locomotive fuel consumption for the first nine months of 2009 decreased by 168 million gallons to 900 million gallons, when compared with consumption in the same 2008 period, resulting in a decrease in expense of $566 million. The remainder of the decrease was primarily due to lower non-locomotive fuel prices.
Interest expense of $462 million for the first nine months of 2009 was $66 million, or 17 percent higher than the first nine months of 2008. This increase was primarily attributable to a net $32 million loss for terminated treasury locks (see Note 2 to the Consolidated Financial Statements). The unfavorable coal rate case decision further increased interest expense by $8 million (see Note 5 to the Consolidated Financial Statements under the heading Coal Rate Case Decision). The remainder of the increase was primarily due to a higher average debt balance. Favorable tax settlements impacted interest expense for both of the nine month periods ended September 30, 2009 and 2008.
Net cash provided by financing activities during the first nine months of 2009 was $9 million, primarily related to net debt borrowings of $352 million, proceeds from a facility financing obligation of $51 million, proceeds from stock options exercised of $26 million and excess tax benefits from equity compensation plans of $18 million, partially offset by dividend payments of $409 and common stock repurchases to satisfy tax withholding obligations for stock option exercises of $15 million.
Read the The complete ReportBNI is in the portfolios of Warren Buffett of Berkshire Hathaway, Tweedy Browne of Tweedy Browne CO LLC, Prem Watsa of Fairfax Financial Holdings, Inc., Wallace Weitz of Weitz Wallace R & Co, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC, George Soros of Soros Fund Management LLC, Ron Baron of Baron Funds, Chris Davis of Davis Selected Advisers, PRIMECAP Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
