dex991.htm

Exhibit 99.1

Investor Contact: Linda Hurt FOR IMMEDIATE RELEASE

(817) 352-6452

Media Contact: Patrick Hiatte

(817) 867-6418

Burlington Northern Santa Fe Reports

Third Quarter 2008 Results

·	Quarterly earnings were $2.00 per diluted share, which included a $0.09 per share impact related to a favorable tax settlement. This compares to third-quarter 2007 earnings of $1.48 per diluted share.

·	Freight revenues increased $818 million, or 21 percent, to $4.77 billion compared with the third quarter of 2007, and included higher fuel surcharges of approximately $570 million.

·	Operating income of $1.21 billion increased $206 million, or 21 percent, compared with the same 2007 period.

FORT WORTH, Texas, October 23, 2008 - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $2.00 per diluted share, compared with third-quarter 2007 earnings of $1.48 per diluted share.

“The U.S. and global economies are facing very significant challenges. Despite the economic uncertainty, BNSF continues to perform well. In the third quarter, BNSF achieved our best quarterly earnings per share in the history of the Company,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “While we are all concerned about the current financial and economic situation, we continue to be optimistic about the future of our diverse franchise and we remain confident about our long-term prospects.”

Third-quarter 2008 freight revenues increased $818 million, or 21 percent, to $4.77 billion compared with $3.95 billion in the prior year. The 21-percent increase in revenue was primarily attributable to improved yields and an increase in fuel surcharges of approximately $570 million driven by higher fuel prices.

-more-

Agricultural Products revenues were up $227 million, or 33 percent, to $909 million, predominately due to strong unit volumes in ethanol, corn and feeds and improved yields. Coal revenues rose $198 million, or 23 percent, to $1.05 billion, as a result of higher unit volumes, contractual inflation escalators and improved yields. Industrial Products revenues of $1.12 billion were $162 million, or 17 percent higher than the third quarter of 2007. Improved yields and increased demand for construction products more than offset the lower unit volumes for both building products and chemicals and plastic products. Consumer Products revenues rose $231 million, or 16 percent, to $1.69 billion due mainly to growth in domestic intermodal unit volumes and improved yields, offset by lower international intermodal unit volumes. Increased fuel surcharges driven by higher fuel prices further benefited each of the business units.

Operating expenses for the third quarter of 2008 were $3.70 billion compared with third-quarter 2007 operating expenses of $3.07 billion. The $631 million increase in operating expenses was primarily driven by a $501 million increase in fuel expense due to higher fuel prices on relatively flat fuel consumption.

Burlington Northern Santa Fe Corporation’s subsidiary BNSF Railway Company operates one of the largest North American rail networks, with about 32,000 route miles in 28 states and two Canadian provinces. BNSF Railway Company is among the world's top transporters of intermodal traffic, moves more grain than any other American railroad, carries the components of many of the products we depend on daily, and hauls enough low-sulfur coal to generate about ten percent of the electricity produced in the United States. BNSF Railway Company is an industry leader in Web-enabling a variety of customer transactions at www.bnsf.com.

Financial information follows:

Burlington Northern Santa Fe Corporation
Consolidated Income Information *
(Dollars in millions, except per share data)

		Three Months						Nine Months
		Ended September 30,						Ended September 30,
		2008			2007			2008			2007

Operating revenues
Freight revenues	$	4,766		$	3,948		$	13,258		$	11,228
Other revenues		140			121			387			329
Total operating revenues		4,906			4,069			13,645			11,557

Operating expenses
Fuel		1,349			848			3,685			2,332
Compensation and benefits		1,013			937			2,947			2,794
Purchased services		537			501			1,602			1,510
Depreciation and amortization		349			324			1,039			953
Equipment rents		230			235			683			704
Materials and other		221			223			893	(a)		728	(b)
Total operating expenses		3,699			3,068			10,849			9,021

Operating income		1,207			1,001			2,796			2,536
Interest expense		122			132			396			385
Other expense, net		6			6			11			17

Income before income taxes		1,079			863			2,389			2,134
Income tax expense		384			333			889			822

Net income	$	695		$	530		$	1,500		$	1,312

Diluted earnings per share	$	2.00		$	1.48		$	4.30		$	3.64

Diluted average shares outstanding (in millions)		347.2			357.1			349.2			360.5

Operating ratio (c)		74.7	%		74.6	%		78.9	%		77.4	%

* Certain comparative prior period amounts have been adjusted to conform to the current period presentation.

(a) Second quarter 2008 includes a $175 million increase in expense related to environmental matters in Montana and $15 million for additional personal injury accruals.

(b) 2007 includes a first-quarter charge of $81 million for additional environmental expenses and a technology system write-off.

(c) Calculated as total operating expenses less other revenues divided by freight revenues.

Burlington Northern Santa Fe Corporation
Consolidated Balance Sheet Information
(Dollars in millions, except per share amounts)

		September 30,			December 31,
		2008			2007

Assets
Current assets:
Cash and cash equivalents	$	476		$	330
Accounts receivable, net		623			790
Materials and supplies		626			579
Current portion of deferred income taxes		422			290
Other current assets		318			192
Total current assets		2,465			2,181

Property and equipment, net		30,510			29,567

Other assets		2,658			1,835

Total assets	$	35,633		$	33,583

Liabilities and stockholders' equity
Current liabilities:
Accounts payable and other current liabilities	$	3,252		$	2,824
Long-term debt due within one year		403			411
Total current liabilities		3,655			3,235

Long-term debt and commercial paper		8,297			7,735
Deferred income taxes		8,847			8,484
Casualty and environmental liabilities		1,004			843
Pension and retiree health and welfare liability		454			444
Employee separation costs		71			77
Other liabilities		1,701			1,621
Total liabilities		24,029			22,439

Stockholders' equity:
Common stock and additional paid-in capital		7,615			7,353
Retained earnings		12,285			11,152
Treasury stock and other		(8,296)			(7,361)
Total stockholders' equity		11,604			11,144

Total liabilities and stockholders' equity	$	35,633		$	33,583

Book value per share	$	33.90		$	32.05
Common shares outstanding (in millions)		342.3			347.7
Net debt to total capitalization (a)		41.5	%		41.2	%

(a) Net debt is calculated as total debt less cash and cash equivalents, and capitalization is calculated as the sum of net debt and total stockholders' equity.

Burlington Northern Santa Fe Corporation
Consolidated Cash Flow Information *
(Dollars in millions)

		Three Months						Nine Months
		Ended September 30,						Ended September 30,
		2008			2007			2008			2007


Operating activities

Net income	$	695		$	530		$	1,500		$	1,312
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		349			324			1,039			953
Deferred income taxes		116			106			248			220
Long-term casualty and environmental liabilities, net		(10	)		(7	)		181			26
Other, net		6			44			39			137
Change in accounts receivable sales program		278			(100	)		278			(100	)
Other changes in working capital		213			(8	)		18			(83	)

Net cash provided by operating activities		1,647			889			3,303			2,465

Investing activities

Capital expenditures		(670	)		(623	)		(1,712	)		(1,775	)
Construction costs for facility financing obligation		(21	)		(9	)		(38	)		(18	)
Other, net		(281	)		(145	)		(631	)		(318	)

Net cash used for investing activities		(972	)		(777	)		(2,381	)		(2,111	)

Financing activities

Net (payments) borrowings		(370	)		192			215			659
Dividends paid		(111	)		(89	)		(334	)		(268	)
Purchase of BNSF common stock		(236	)		(255	)		(878	)		(964	)
Proceeds from stock options exercised		8			11			87			126
Proceeds from facility financing obligation		21			-			50			-
Other, net		8			11			84			93

Net cash used for financing activities		(680	)		(130	)		(776	)		(354	)
(Decrease) increase in cash and cash equivalents		(5	)		(18	)		146			-

Cash and cash equivalents:
Beginning of period		481			393			330			375
End of period	$	476		$	375		$	476		$	375
* Certain comparative prior period amounts have been adjusted to conform to the current period presentation.

Burlington Northern Santa Fe Corporation
Operating Statistics *

		Three Months				Nine Months
		Ended September 30,				Ended September 30,
		2008		2007		2008			2007

Revenue Statistics

Cars / units (in thousands)		2,590		2,630		7,585			7,718

Average revenues per car / unit	$	1,840	$	1,501	$	1,748		$	1,455

Revenue ton miles (in millions)		170,134		166,635		502,443			487,326

Freight revenue / thousand GTM	$	16.64	$	13.93	$	15.63		$	13.48

Freight revenue / thousand RTM	$	28.01	$	23.69	$	26.39		$	23.04

Average length of haul (miles)		1,081		1,067		1,088			1,077

Operating / Productivity Statistics

Operating Expense
Gross ton miles (in millions)		286,486		283,465		848,364			833,083

Operating expense / thousand GTM	$	12.91	$	10.82	$	12.79	(a)	$	10.83	(b)

Thousand GTM / average employee		6,970		6,822		20,698			20,069

Compensation
Average employees		41,103		41,553		40,987			41,510

Compensation and benefits / average employee	$	24,646	$	22,551	$	71,893		$	67,318

Compensation and benefits / thousand GTM	$	3.54	$	3.31	$	3.47		$	3.35

Fuel
GTM / gallon of fuel		821		803		794			779

Gallons of fuel used (in millions)		349		353		1,068			1,069

Average price per gallon of fuel (c)	$	3.72	$	2.31	$	3.33		$	2.09

Velocity
Locomotive miles per day		287.4		288.4		290.3			290.0

Car miles per day		205.5		195.2		203.3			196.6


* Certain comparative prior period amounts have been adjusted to conform to the current period presentation.

(a) Second quarter 2008 includes a $175 million increase in expense related to environmental matters in Montana and $15 million for additional personal injury accruals.

(b) 2007 includes a first-quarter charge of $81 million for additional environmental expenses and a technology system write-off.

(c) Includes handling, taxes and hedge effect.

Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity

		Three Months						Nine Months
		Ended September 30,			Percent			Ended September 30,			Percent
Revenues (in millions)		2008		2007	Change			2008		2007	Change
Domestic Intermodal	$	783	$	645	21.4	%	$	2,149	$	1,841	16.7	%
International Intermodal		776		690	12.5			2,095		1,963	6.7
Automotive		127		120	5.8			399		363	9.9
Total Consumer Products		1,686		1,455	15.9			4,643		4,167	11.4

Industrial Products		1,124		962	16.8			3,109		2,758	12.7
Coal		1,047		849	23.3			2,903		2,385	21.7
Agricultural Products		909		682	33.3			2,603		1,918	35.7
Total freight revenue		4,766		3,948	20.7			13,258		11,228	18.1
Other revenue		140		121	15.7			387		329	17.6
Total revenues	$	4,906	$	4,069	20.6	%	$	13,645	$	11,557	18.1	%

Cars / units (in thousands)
Domestic Intermodal		555		528	5.1	%		1,598		1,545	3.4	%
International Intermodal		667		740	(9.9	)		1,943		2,213	(12.2	)
Automotive		32		39	(17.9	)		114		124	(8.1	)
Total Consumer Products		1,254		1,307	(4.1	)		3,655		3,882	(5.8	)

Industrial Products		420		431	(2.6	)		1,245		1,252	(0.6	)
Coal		645		627	2.9			1,868		1,832	2.0
Agricultural Products		271		265	2.3			817		752	8.6
Total cars / units		2,590		2,630	(1.5	)%		7,585		7,718	(1.7	)%

Average revenue per car / unit
Domestic Intermodal	$	1,411	$	1,222	15.5	%	$	1,345	$	1,192	12.8	%
International Intermodal		1,163		932	24.8			1,078		887	21.5
Automotive		3,969		3,077	29.0			3,500		2,927	19.6
Total Consumer Products		1,344		1,113	20.8			1,270		1,073	18.4

Industrial Products		2,676		2,232	19.9			2,497		2,203	13.3
Coal		1,623		1,354	19.9			1,554		1,302	19.4
Agricultural Products		3,354		2,574	30.3			3,186		2,551	24.9
Average revenue per car / unit	$	1,840	$	1,501	22.6	%	$	1,748	$	1,455	20.1	%

Revenue ton miles (in millions)
Domestic Intermodal		14,249		13,331	6.9	%		40,951		38,755	5.7	%
International Intermodal		19,556		20,854	(6.2	)		58,194		62,487	(6.9	)
Automotive		1,231		1,454	(15.3	)		4,236		4,547	(6.8	)
Total Consumer Products		35,036		35,639	(1.7	)		103,381		105,789	(2.3	)

Industrial Products		29,557		30,337	(2.6	)		88,056		88,701	(0.7	)
Coal		75,001		71,468	4.9			215,570		207,209	4.0
Agricultural Products		30,540		29,191	4.6			95,436		85,627	11.5
Total revenue ton miles		170,134		166,635	2.1	%		502,443		487,326	3.1	%

Freight revenue per thousand ton miles
Domestic Intermodal	$	54.95	$	48.38	13.6	%	$	52.48	$	47.50	10.5	%
International Intermodal		39.68		33.09	19.9			36.00		31.41	14.6
Automotive		103.17		82.53	25.0			94.19		79.83	18.0
Total Consumer Products		48.12		40.83	17.9			44.91		39.39	14.0

Industrial Products		38.03		31.71	19.9			35.31		31.09	13.6
Coal		13.96		11.88	17.5			13.47		11.51	17.0
Agricultural Products		29.76		23.36	27.4			27.27		22.40	21.7
Freight revenue per thousand ton miles	$	28.01	$	23.69	18.2	%	$	26.39	$	23.04	14.5	%

Burlington Northern Santa Fe Corporation
Capital Expenditures

		Three Months				Nine Months
		Ended September 30,				Ended September 30,
		2008		2007		2008		2007

Capital expenditures (in millions)
Engineering
Rail	$	128	$	106	$	337	$	305
Ties		108		78		286		256
Surfacing		73		68		182		194
Other		172		128		402		333
Total engineering		481		380		1,207		1,088
Mechanical		47		40		116		102
Other		49		23		100		74
Total replacement capital		577		443		1,423		1,264

Information services		28		13		71		49
New locomotive and freight car acquisitions		-		-		8		-
Terminal and line expansion		65		167		210		462
Total capital expenditures	$	670	$	623	$	1,712	$	1,775


Track miles of rail laid
Replacement capital		295		228		699		599
Expansion projects		20		75		43		147
Total		315		303		742		746

Cross ties inserted (thousands)
Replacement capital		1,008		747		2,387		2,229
Expansion projects		53		144		120		331
Total		1,061		891		2,507		2,560

Track resurfaced (miles)		4,465		3,448		10,608		9,818