Copyright
© © TradePress Media Group, Inc.
Rail News Home BNSF Railway 5/3/2022 Rail News: BNSF Railway
BNSF Railway Co. late last week reported double-digit increases in first-quarter 2022 revenue, net income and operating expenses compared with the same period a year ago.Total revenue in Q1 2022 climbed 10% to nearly $6 billion; operating income rose 8% to $2 billion; net income increased 10% to $1.4 billion; and operating expenses jumped 12% to $3.9 billion compared with the same quarter last year, according to a statement posted on BNSF's website.The Class I posted an operating ratio of 64.6% for the quarter, up from 63.7% a year ago.BNSF attributed the revenue increase primarily to a 14% increase in average revenue per car/unit resulting from higher fuel surcharge revenue driven by higher fuel prices along with increased rates per car. Revenue was partially offset by a 3% decrease in unit volume.In addition, BNSF reported revenue changes resulted from the following:
• Consumer products volumes decreased 8% due to lower international intermodal volumes caused by supply-chain challenges and lower automotive shipments;
• Agricultural products volumes fell 4% primarily because of lower grain exports, which were partially offset by higher volumes of ethanol and related commodities;
• Industrial products volumes rose 1% primarily due to growth in the U.S. industrial economy; and
• Coal volumes climbed 14% due to increased electricity generation, higher natural gas prices and improved export demand.BNSF attributed the increase in operating expenses to higher compensation and benefits, higher fuel costs and inflation.