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BNSF reports strong 3Q earnings

HUTCHINSON, Kan. — The nation’s two largest railroads continue to recover from the recession and sharp declines in car loads. BNSF followed in step with Union Pacific in reporting positive earnings for the third quarter.

The railroad, which is the third largest property taxpayer in Reno County at more than $1.25 million on more than $8 million in valuation, reported revenue of $5.31 billion and net earnings of $1.04 billion in the third quarter. Those are up 4.7 percent and 2.2 percent, respectively, from the third quarter of 2016.

Like it has been all year, the resurgence of coal boosted revenue for the rail company. Coal is one of the most important products rail companies like BNSF transport.

Freight revenues from coal increased 5.9 percent to $1 billion. In the first nine months of 2017, freight revenue from coal is up 20.7 percent. BNSF attributed the rise in both shipment volume of coal and cost per car to higher costs for one of coal’s main rivals in energy, natural gas.

Not all of the news was good as shipments of ag products decreased 9.4 percent year-over-year, due to a volume decrease of 12 percent. BNSF said the decrease was driven by lower grain exports, which was partially offset by higher domestic grain.

Because of improving economic conditions, freight revenue from consumer goods rose 7.6 percent. A rise in drilling activity upped shipments of products like sand, and helped freight revenue from industrial goods increase 4 percent in the third quarter.

The railroad also continues to hire back rail crews and bring more of its fleet out of mothballs, which at one time numbered more than 1,000 locomotives.

Tyson Foods is next in the line of companies with ties to Hutchinson as it releases fourth quarter earnings on Monday, Nov. 13.

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