OMAHA, Neb. — BNSF Railway’s third-quarter profits rose primarily due to higher rates and more efficient operations, corporate parent Berkshire Hathaway reported on Saturday.
Pre-tax income rose 3.6%, to $1.91 billion, on flat revenue of $5.88 billion. Net income grew 4.8%, to $1.44 billion. The railway’s operating ratio was 64.1%, a 1-point improvement over a year ago.
Overall volume and average revenue per carload were both up 0.8% for the quarter.
Volume in BNSF’s consumer products segment — which includes intermodal and automotive business — increased 2.2% during the quarter. “The volume increases were primarily due to higher intermodal shipments resulting from higher West Coast imports and an increase in automotive vehicle volumes,” Berkshire said.
Industrial products volume declined 1.9%. “The volume declines were primarily due to lower demand for construction products and lower petroleum products shipments,” Berkshire said.
Agricultural and energy products shipments rose 0.8%, with higher grain exports largely offset by lower domestic grain and feed shipments.
Coal traffic declined 2.1% compared to a year ago. The lower volume, Berkshire said, was primarily due to mine production challenges.
