BNSF Railway reported higher second-quarter, pre-tax earnings thanks to a combination of volume growth and higher revenue per load, parent company Berkshire Hathaway (NYSE: BRK-B) reported on Saturday.
BNSF's pre-tax earnings rose 13.9%, to $2.06 billion, as revenue increased 14.6%, to $6.56 billion. The railway's operating expenses increased 15.6% compared to a year ago, as fuel costs surged 68%. BNSF's operating ratio was 65.4%, an 0.6-point increase.
Quarterly volume rose 6.5%, while average revenue per unit increased 7.6%, primarily from higher fuel surcharge revenue.
Consumer products volume, which includes intermodal and automotive traffic, grew 9.3%. Berkshire said the volume growth was due to "higher intermodal shipments resulting from higher West Coast imports, market share gains, and tightening truck capacity."
Agricultural and energy products traffic was up 11.5% for the quarter. "The volume increases were primarily due to higher grain exports, petroleum fuels and oilseeds and meals," Berkshire reported.
#increased #quarter
BNSF's pre-tax earnings rose 13.9%, to $2.06 billion, as revenue increased 14.6%, to $6.56 billion. The railway's operating expenses increased 15.6% compared to a year ago, as fuel costs surged 68%. BNSF's operating ratio was 65.4%, an 0.6-point increase.
Quarterly volume rose 6.5%, while average revenue per unit increased 7.6%, primarily from higher fuel surcharge revenue.
Consumer products volume, which includes intermodal and automotive traffic, grew 9.3%. Berkshire said the volume growth was due to "higher intermodal shipments resulting from higher West Coast imports, market share gains, and tightening truck capacity."
Agricultural and energy products traffic was up 11.5% for the quarter. "The volume increases were primarily due to higher grain exports, petroleum fuels and oilseeds and meals," Berkshire reported.
#increased #quarter
2 months ago
