BNSF Railway reported larger second-quarter, pre-tax earnings due to a mix of quantity development and better income per load, father or mother firm Berkshire Hathaway (NYSE: BRK-B) reported on Saturday.
BNSF’s pre-tax earnings rose 13.9%, to $2.06 billion, as income elevated 14.6%, to $6.56 billion. The railway’s working bills elevated 15.6% in comparison with a yr in the past, as gas prices surged 68%. BNSF’s working ratio was 65.4%, an 0.6-point improve.
Quarterly quantity rose 6.5%, whereas common income per unit elevated 7.6%, primarily from larger gas surcharge income.
Client merchandise quantity, which incorporates intermodal and automotive visitors, grew 9.3%. Berkshire stated the quantity development was attributable to “larger intermodal shipments ensuing from larger West Coast imports, market share features, and tightening truck capability.”
Agricultural and power merchandise visitors was up 11.5% for the quarter. “The quantity will increase have been primarily attributable to larger grain exports, petroleum fuels and oilseeds and meals,” Berkshire reported.
Industrial merchandise quantity elevated 3.1%, which Berkshire attributed to larger metal, aggregates, and cement shipments.
Coal quantity declined 7.9%, “primarily attributable to plant retirements and decrease demand, attributable to decrease pure gasoline costs,” Berkshire stated.
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