dex991.htm

Investor Contact:	Linda Hurt
	(817) 352-6452

Media Contact:	John Ambler
	(817) 867-6407

Burlington Northern Santa Fe Reports

Second Quarter 2009 Results

·	Quarterly earnings were $1.18 per diluted share.

·	Compares to second-quarter 2008 earnings of $1.00 per diluted share, which included a $0.31 per share charge related to environmental matters in Montana.

·	Freight revenues decreased $1.13 billion, or 26 percent, to $3.22 billion compared with the second quarter of 2008.

·	Loads handled decreased 19 percent.

·	Fuel surcharges declined by about $600 million.

·	Operating expenses of $2.52 billion were $1.25 billion, or 33 percent, lower than second quarter 2008.

·	Strong cost controls.

·	Decreased unit volumes.

·	Lower fuel prices decreased fuel expense by about $600 million.

FORT WORTH, Texas, July 23, 2009 - Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $1.18 per diluted share, compared to second-quarter 2008 earnings of $1.00 per diluted share, which included a $0.31 per share charge related to environmental matters in Montana.

“BNSF had another strong quarter of cost control in an extremely difficult economic environment,” said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. “We are beginning to see BNSF’s volumes stabilize in our more economic sensitive businesses, and because of our continued focus on productivity combined with our long-term market opportunities, we are well positioned to benefit when the economy recovers.”

Second-quarter 2009 freight revenues decreased $1.13 billion, or 26 percent, to $3.22 billion compared with $4.35 billion in the prior year. The 26-percent decrease in revenues included a decrease in fuel surcharges of about $600 million. The remaining variance was due to lower unit volumes as a result of the economic downturn, partially offset by improved yields.

Coal revenues of $875 million were down $27 million, or 3 percent, on flat unit volumes. Agricultural Products decreased $210 million, or 25 percent, to $618 million on lower unit volumes primarily driven by reduced domestic loadings and international grain shipments, partially offset by improved yields. Industrial Products revenues fell $360 million, or 34 percent, to $686 million, which included a decline in unit volumes that was driven by lower demand for construction products and building products and was partially offset by improved yields. Consumer Products revenues declined $535 million, or 34 percent, to $1.04 billion, on lower international intermodal, domestic intermodal and automotive volumes due to economic conditions. Decreased fuel surcharges driven by lower fuel prices also negatively impacted revenues of each of the business units.

Operating expenses for the second quarter of 2009 declined $1.25 billion, or 33 percent, to $2.52 billion, compared with second-quarter 2008 operating expenses of $3.76 billion. The $1.25 billion reduction was primarily attributable to strong cost controls, decreased unit volumes and lower fuel prices.

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.

Burlington Northern Santa Fe Corporation will present additional information on its second quarter earnings in a webcast at 4:30 p.m. Eastern Time July 23, 2009.

Financial information follows:

	Quarterly earnings were $1.18 per diluted share. · Compares to a second-quarter 2008 earnings of $1.00 per diluted share which included a $0.31 per share charge related to environmental matters in Montana.
	Second quarter operating income for 2009 was $797 million. · Compares to second-quarter 2008 operating income of $714 million which included a $175 million charge related to environmental matters in Montana.
	Freight revenues decreased $1.13 billion, or 26 percent, to $3.22 billion compared with the second quarter of 2008. · Loads handled decreased 19 percent. · Fuel surcharges declined by about $600 million.
	Operating expenses of $2.52 billion were $1.25 billion, or 33 percent, lower than second quarter 2008. · Strong cost controls. · Decreased unit volumes. · Lower fuel prices decreased fuel expense by about $600 million.

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


		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2009		2008		2009		2008
Operating revenues
Freight revenues (a)	$	3,217	$	4,349	$	6,529	$	8,492
Other revenues		99		129		211		247
Total operating revenues		3,316		4,478		6,740		8,739

Operating expenses
Compensation and benefits		824		951		1,692		1,934
Fuel		509		1,291		1,123		2,336
Purchased services		466		540		944		1,065
Depreciation and amortization		379		349		749		690
Equipment rents		196		223		397		453
Materials and other (b)		145		410		369		672
Total operating expenses		2,519		3,764		5,274		7,150

Operating income		797		714		1,466		1,589
Interest expense (c)		137		140		335		274
Other expense, net		1		5		4		5

Income before income taxes		659		569		1,127		1,310
Income tax expense		255		219		430		505

Net income	$	404	$	350	$	697	$	805

Diluted earnings per share	$	1.18	$	1.00	$	2.03	$	2.29

Operating ratio (d)		75.2%		83.6%		77.5%		81.3%

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

(a) First quarter 2009 includes a $96 million charge related to an unfavorable coal rate case decision.

(b) Second quarter 2008 includes a $175 million increase in expense related to environmental matters in Montana.

(c) The first six months of 2009 includes a net $32 million loss on interest rate hedges and $9 million related to an unfavorable coal rate case decision.

(d) 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)


		June 30, 2009		December 31, 2008
Assets
Current assets:
Cash and cash equivalents	$	484	$	633
Accounts receivable, net		815		847
Materials and supplies		534		525
Current portion of deferred income taxes		409		442
Other current assets		337		218
Total current assets		2,579		2,665

Property and equipment, net		31,744		30,847

Other assets		3,049		2,891

Total assets	$	37,372	$	36,403

Liabilities and stockholders' equity
Current liabilities:
Accounts payable and other current liabilities	$	2,880	$	3,190
Long-term debt due within one year		555		456
Total current liabilities		3,435		3,646

Long-term debt		9,283		9,099
Deferred income taxes		8,992		8,590
Pension and retiree health and welfare liability		1,020		1,047
Casualty and environmental liabilities		949		959
Employee separation costs		65		57
Other liabilities		1,777		1,874
Total liabilities		25,521		25,272

Stockholders' equity:
Common stock and additional paid-in capital		7,681		7,636
Retained earnings		13,190		12,764
Treasury stock and other		(9,020)		(9,269)
Total stockholders' equity		11,851		11,131

Total liabilities and stockholders' equity	$	37,372	$	36,403

Book value per share	$	34.86	$	32.82
Common shares outstanding (in millions)		340.0		339.2

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


		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2009		2008		2009		2008
Operating activities

Net income	$	404	$	350	$	697	$	805
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		379		349		749		690
Deferred income taxes		168		49		258		132
Long-term casualty and environmental liabilities, net		(29)		184		(30)		191
Other, net		(34)		32		15		33
Changes in accounts receivable sales program		-		-		(50)		-
Other changes in working capital		(100)		(223)		(117)		(195)

Net cash provided by operating activities		788		741		1,522		1,656

Investing activities

Capital expenditures		(620)		(574)		(1,082)		(1,042)
Construction costs for facility financing obligation		(18)		(13)		(31)		(17)
Acquisition of equipment pending financing		(170)		(257)		(456)		(430)
Proceeds from sale of assets financed		-		190		368		190
Other, net		(98)		(12)		(96)		(110)

Net cash used for investing activities		(906)		(666)		(1,297)		(1,409)

Financing activities

Net borrowings (payments)		96		155		(155)		585
Dividends paid		(137)		(111)		(273)		(223)
Purchase of BNSF common stock		(8)		(269)		(12)		(642)
Proceeds from stock options exercised		4		44		12		79
Proceeds from facility financing obligation		36		11		51		29
Other, net		1		51		3		76

Net cash used for financing activities		(8)		(119)		(374)		(96)
(Decrease) increase in cash and cash equivalents		(126)		(44)		(149)		151

Cash and cash equivalents:
Beginning of period		610		525		633		330
End of period	$	484	$	481	$	484	$	481

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

Burlington Northern Santa Fe Corporation
Operating Statistics*

		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2009		2008		2009			2008
Revenue Statistics

Cars / units (in thousands)		2,041		2,509		4,169			4,995

Average revenue per car / unit	$	1,576	$	1,733	$	1,589	(a)	$	1,700

Average length of haul (miles)		1,110		1,096		1,104			1,091

Revenue ton miles (in millions)		143,703		164,373		292,851			332,309

Freight revenue / thousand GTM	$	13.50	$	15.58	$	13.65	(a)	$	15.11

Freight revenue / thousand RTM	$	22.39	$	26.46	$	22.62	(a)	$	25.55

Operating / Productivity Statistics

Operating Expense
Gross ton miles (in millions)		238,376		279,060		485,384			561,878

Operating expense / thousand GTM (b)	$	10.57	$	13.49	$	10.87		$	12.73

Thousand GTM / average employee		6,320		6,740		12,743			13,728

Compensation
Average employees		37,715		41,404		38,091			40,929

Compensation and benefits / average employee	$	21,848	$	22,963	$	44,417		$	47,244

Compensation and benefits / thousand GTM	$	3.46	$	3.41	$	3.49		$	3.44

Fuel (c)
GTM / gallon of fuel		816		786		796			781

Gallons of fuel used (in millions)		292		355		610			719

Average price per gallon of fuel (d)	$	1.65	$	3.51	$	1.75		$	3.14

Velocity
Locomotive miles per day		310.9		295.7		304.4			299.7

Car miles per day		236.1		202.5		229.7			202.2

*	Certain comparative prior period amounts have been adjusted to conform to the current period presentation.
(a)	2009 coal revenues on a GAAP basis were $1,738 million. However, for comparative purposes the table above excludes (from coal revenues and from the computation of amounts derived therefrom) a first-quarter charge of $96 million related to an unfavorable coal rate case decision.
(b)	Second quarter 2008 includes a $175 million increase in expense related to environmental matters in Montana.
(c)	Fuel statistics are based on locomotive diesel fuel.
(d)	Includes handling, taxes and hedge effect.

Burlington Northern Santa Fe Corporation
Revenue Statistics by Commodity

		Three Months							Six Months
		Ended June 30,			Percent				Ended June 30,				Percent
Revenues (in millions)		2009		2008	Change				2009			2008	Change

Domestic Intermodal	$	512	$	730	(29.9	)	%	$	1,027		$	1,366	(24.8	)	%
International Intermodal		444		700	(36.6	)			906			1,319	(31.3	)
Automotive		82		143	(42.7	)			156			272	(42.6	)
Total Consumer Products		1,038		1,573	(34.0	)			2,089			2,957	(29.4	)

Coal		875		902	(3.0	)			1,834	(a)		1,856	(1.2	)
Industrial Products		686		1,046	(34.4	)			1,405			1,985	(29.2	)
Agricultural Products		618		828	(25.4	)			1,297			1,694	(23.4	)
Total freight revenue		3,217		4,349	(26.0	)			6,625			8,492	(22.0	)
Other revenue		99		129	(23.3	)			211			247	(14.6	)
Total revenues	$	3,316	$	4,478	(25.9	)	%	$	6,836		$	8,739	(21.8	)	%

Cars/units (in thousands)
Domestic Intermodal		460		539	(14.7	)	%		918			1,043	(12.0	)	%
International Intermodal		474		654	(27.5	)			971			1,276	(23.9	)
Automotive		24		43	(44.2	)			45			82	(45.1	)
Total Consumer Products		958		1,236	(22.5	)			1,934			2,401	(19.5	)

Coal		589		589	0.0				1,216			1,223	(0.6	)
Industrial Products		282		422	(33.2	)			580			825	(29.7	)
Agricultural Products		212		262	(19.1	)			439			546	(19.6	)
Total cars/units		2,041		2,509	(18.7	)	%		4,169			4,995	(16.5	)	%

Average revenue per car/unit
Domestic Intermodal	$	1,113	$	1,354	(17.8	)	%	$	1,119		$	1,310	(14.6	)	%
International Intermodal		937		1,070	(12.4	)			933			1,034	(9.8	)
Automotive		3,417		3,326	2.7				3,467			3,317	4.5
Total Consumer Products		1,084		1,273	(14.8	)			1,080			1,232	(12.3	)

Coal		1,486		1,531	(2.9	)			1,508	(a)		1,518	(0.7	)
Industrial Products		2,433		2,479	(1.9	)			2,422			2,406	0.7
Agricultural Products		2,915		3,160	(7.8	)			2,954			3,103	(4.8	)
Average revenue per car/unit	$	1,576	$	1,733	(9.1	)	%	$	1,589		$	1,700	(6.5	)	%

Revenue ton miles (in millions)
Domestic Intermodal		12,125		13,907	(12.8	)	%		23,992			26,702	(10.1	)	%
International Intermodal		14,959		19,642	(23.8	)			29,659			38,638	(23.2	)
Automotive		940		1,548	(39.3	)			1,733			3,005	(42.3	)
Total Consumer Products		28,024		35,097	(20.2	)			55,384			68,345	(19.0	)

Coal		69,475		68,259	1.8				142,720			140,569	1.5
Industrial Products		21,060		30,144	(30.1	)			42,361			58,499	(27.6	)
Agricultural Products		25,144		30,873	(18.6	)			52,386			64,896	(19.3	)
Total revenue ton miles		143,703		164,373	(12.6	)	%		292,851			332,309	(11.9	)	%

Freight revenue per thousand ton miles
Domestic Intermodal	$	42.23	$	52.49	(19.5	)	%	$	42.81		$	51.16	(16.3	)	%
International Intermodal		29.68		35.64	(16.7	)			30.55			34.14	(10.5	)
Automotive		87.23		92.38	(5.6	)			90.02			90.52	(0.6	)
Total Consumer Products		37.04		44.82	(17.4	)			37.72			43.27	(12.8	)

Coal		12.59		13.21	(4.7	)			12.85	(a)		13.20	(2.7	)
Industrial Products		32.57		34.70	(6.1	)			33.17			33.93	(2.2	)
Agricultural Products		24.58		26.82	(8.4	)			24.76			26.10	(5.1	)
Freight revenue per thousand ton miles	$	22.39	$	26.46	(15.4	)	%	$	22.62		$	25.55	(11.5	)	%

(a) 2009 coal revenues on a GAAP basis were $1,738 million. However, for comparative purposes the table above excludes (from coal revenues and from the computation of amounts derived therefrom) a first-quarter charge of $96 million related to an unfavorable coal rate case decision.

Burlington Northern Santa Fe Corporation
Capital Expenditures*
		Three Months				Six Months
		Ended June 30,				Ended June 30,
		2009		2008		2009		2008
Capital expenditures (in millions)
Engineering
Rail	$	138	$	122	$	248	$	209
Ties		144		107		231		178
Surfacing		78		69		120		109
Other		157		129		265		229
Total engineering		517		427		864		725
Mechanical		25		33		62		69
Other		30		23		58		52
Total replacement capital		572		483		984		846

Information services		24		20		43		43
New locomotive and freight car acquisitions		-		8		-		8
Terminal and line expansion		24		63		55		145
Total capital expenditures	$	620	$	574	$	1,082	$	1,042


Track miles of rail laid
Replacement capital		318		251		523		404
Expansion projects		-		10		12		23
Total		318		261		535		427

Cross ties inserted (thousands)
Replacement capital		1,223		839		1,992		1,379
Expansion projects		3		34		13		67
Total		1,226		873		2,005		1,446

Track resurfaced (miles)		5,015		4,128		7,366		6,143



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