OMAHA, Neb. — BNSF Railway’s revenue and profits grew in the first quarter despite a decline in volume.
The railway’s operating income rose 8%, to $2 billion, as revenue increased 10%, to $6 billion, thanks to higher revenue per carload and intermodal unit, the railroad’s parent company, Berkshire Hathaway, reported on Saturday. BNSF’s operating ratio rose 0.9 points to 64.6%.
Overall volume decreased 3.3% due to declines in shipments of international intermodal, finished vehicles, and agricultural products.
Consumer products volume — which includes intermodal and automotive traffic — declined 8.5%. “The volume decrease was mainly from lower international intermodal shipments resulting from supply chain challenges and lower automotive shipments due to production impacts from a global microchip shortage, partially offset by an increase in domestic intermodal volumes,” Berkshire said in its filing.
Industrial products volume grew 1.3% in the quarter as production rose.
Agricultural products volume slumped 4.1%, largely due to lower grain exports. Ethanol volumes rose, however.
Coal traffic rose nearly 14%. “The volume increase in 2022 derived from increased electricity generation, higher natural gas prices and improved export demand,” Berkshire said.
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