Burlington Northern Inc. announces record quarterly, annual earnings.FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 19, 1995--Burlington Northern Inc. (BNI BNI Business Network International BNI Business Networking International BNI Bank Negara Indonesia BNI Bechtel National, Inc. BNI British Nursing Index BNI Barrow Neurological Institute (Phoenix, AZ) ) (NYSE NYSE See: New York Stock Exchange :BNI) Thursday Thursday: see week. announced the highest quarterly and annual earnings ever achieved by the company. Fourth quarter 1994 net income of $142 million, $1.51 per common share (primary) or $1.46 per common share (fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), was 20 percent greater than the $118 million, $1.25 per common share (primary) or $1.21 per common share (fully diluted), earned in the same 1993 quarter. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $264 million represented an 18 percent increase over the prior year's fourth quarter. Revenues for the fourth quarter reached $1.34 billion, also an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal quarterly record, and were 8 percent higher than reported for the same period of 1993. Full year 1994 net income for BNI was $416 million, $4.37 per common share (primary) or $4.27 per common share (fully diluted), a 41 percent increase over 1993. Annual operating income rose 29 percent to $853 million, while revenues climbed 6 percent to nearly $5 billion. Included in 1994 earnings was the cumulative effect of an accounting adjustment which reduced net income by $10 million and earnings per common share by $.11 (primary). Reported 1993 net income included a third quarter charge of $26 million, or $.29 per common share (primary), to reflect the effect of a 1 percent increase in the corporate income tax rate on the year end 1992 deferred tax balance. BNI had also announced that operating income in the second and third quarter of 1993 was reduced by a total of $88 million, or $.61 per common share (primary), due to the summer's flooding. Agricultural commodities experienced all-time record volume and revenues in the quarter. Abundant harvests in BNI's service territory, strong domestic demand, and a resurgence re·sur·gence n. 1. A continuing after interruption; a renewal. 2. A restoration to use, acceptance, activity, or vigor; a revival. in foreign demand combined to increase unit volume 18 percent. Revenues grew to $274 million, 24 percent over the fourth quarter of last year. Revenues from intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. shipments grew 15 percent to $216 million as strong import and export demand for containerized con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. freight, and market share gains in the domestic less-than-truckload market, drove unit volumes up 11 percent over fourth quarter 1993. Fourth quarter 1994 coal volume of 44.8 million tons and revenues of $416 million set all-time records, surpassing last year's fourth quarter records established as the company made a concerted effort to replenish re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. coal stockpiles seriously depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d during the summer's flooding. "While agricultural commodities, intermodal, and coal accounted for most of the revenue growth in the quarter, most other commodity groups turned in solid performances as well," said Gerald Grinstein Gerald Grinstein is the former CEO of Delta Air Lines, Inc. of Atlanta, Georgia, the world's second largest airline. Grinstein came to the position in 2004, after CEO Leo F. , chairman and chief executive officer of BNI. "The pace at which we operated during the second half of 1994 has established the benchmark for 1995." Record fourth quarter volumes were a challenge for BNI employees. There were a number of locations throughout the system that operated in excess of normal capacity for much of the quarter. Extraordinary measures were taken to serve customers and satisfy as much of the immediate demand as possible. In response to growing market opportunities, BNI continued to invest in its freight-hauling capacity. By the end of the year, the company had added more than 1,000 engineers and conductors to its work force, increased its fleet of highly productive AC traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. locomotives This is a list of locomotives (classes, or individual locomotives) that currently have articles in Wikipedia.
While handling record volumes of business, the company was able to operate safely and efficiently. Personal injuries resulting in lost work days fell 52 percent during 1994 and derailment derailment /de·rail·ment/ (de-ral´ment) disordered thought or speech characteristic of schizophrenia and marked by constant jumping from one topic to another before the first is fully realized. incidents were reduced by 21 percent over the same period. "We reduced our fourth quarter operating ratio Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: (the ratio of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. ) to 80.4, its lowest point ever, and brought the full year down to 82.9, a three point improvement over 1993," said Grinstein. "We were pleased with our performance in the second half of 1994, particularly in the fourth quarter, and we are encouraged by the market opportunities we see in the coming year. We are confident that we can take advantage of these opportunities while at the same time increasing the productivity of our system." Headquartered in Forth Worth, BNI is the parent of Burlington Northern Railroad The Burlington Northern Railroad (AAR reporting marks BN) was a United States-based railroad company operating between 1970 and 1995. History The Burlington Northern was the product of a March 2, 1970 merger comprising the Great Northern Railway, the Northern , the longest rail system in terms of miles of road and second main track, in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , with operations in 25 states and two Canadian provinces Noun 1. Canadian province - Canada is divided into 12 provinces for administrative purposes province, state - the territory occupied by one of the constituent administrative districts of a nation; "his state is in the deep south" . Its principal sources of revenue are the transportation of coal, grain, intermodal containers, and a wide variety of industrial, consumer, automotive and forest products. Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge follow. -0-
Burlington Northern Inc. and Subsidiaries
Consolidated Condensed Statements of Income
(Dollars In Millions, Except Per Share Data)
(Unaudited)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
Pct. Pct.
1994 1993 Change 1994 1993 Change
Revenues $1,344 $1,246 7.9 $4,995 $4,699 6.3 Costs and expenses 1,080 1,022 5.7 4,142 4,038 2.6 Operating income 264 224 17.9 853 661 29.0 Interest expense 37 38 -2.6 155 145 6.9 Other income (expense), net 4 3 33.3 (3) 5 -160.0 Income before income taxes and cumulative effect of change in accounting method 231 189 22.2 695 521 33.4 Income tax expense 89 71 25.4 269 225 19.6 Income before cumulative effect of change in accounting method 142 118 20.3 426 296 43.9 Cumulative effect of change in accounting method, net of tax -- -- -- (10) -- -- Net income $142 $118 20.3 $416 $296 40.5 Primary earnings (loss) per common share: Income before cumulative effect of change in accounting method $1.51 $1.25 20.8 $4.48 $3.06 46.4 Cumulative effect of change in accounting method -- -- -- (0.11) -- -- Primary earnings per common share $1.51 $1.25 20.8 $4.37 $3.06 42.8 Shares used in computation (in thousands) 90,095 89,919 0.2 90,187 89,672 0.6 Fully diluted earnings (loss) per common share: Income before cumulative effect of change in accounting method $1.46 $1.21 20.7 $4.38 $3.04 44.1 Cumulative effect of change in accounting method -- -- -- (0.11) -- -- Fully diluted earnings per common share $1.46 $1.21 20.7 $4.27 $3.04 40.5 Shares used in computation (in thousands) 97,436 97,362 0.1 97,528 97,189 0.3 Dividends declared per common share $0.30 $0.30 $1.20 $1.20
Burlington Northern Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(Dollars In Millions -- Unaudited)
Dec. 31, Dec. 31,
1994 1993
ASSETS
Current assets $1,012 $891
Property and equipment, net 6,311 5,909
Other assets 269 245
Total assets $7,592 $7,045
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Commercial paper $90 $26
Current portion of long-term debt 32 185
Other 1,325 1,318
Total current liabilities 1,447 1,529
Long-term debt 1,697 1,526 Other liabilities 2,211 2,071 Stockholders' equity 2,237 1,919 Total liabilities and stockholders' equity $7,592 $7,045 SUPPLEMENTAL FINANCIAL INFORMATION Financial Ratios Debt to total capital 44.8% 47.5% Return on assets (ROA) 5.8% 4.4% Return on equity (ROE) 20.7% 16.2% Times interest earned 5.5 4.6
4th Full
Quarter Year
BNI STOCK PRICES (CLOSING) 1994 1994
High $51-5/8 $66 Low $46-5/8 $46-5/8 End of Period $48-1/8 $48-1/8 Beginning of period $50-1/4 $57-7/8
Burlington Northern Inc. and Subsidiaries
Consolidated Statements Of Cash Flows
(Dollars in Millions -- Unaudited)
Year Ended
Dec. 31,
1994 1993
Operating activities
Net income $ 416 $ 296
Adjustments to reconcile net income to net
cash provided by operating activities:
Cumulative effect of change in
accounting method 10 --
Depreciation 362 352
Deferred income taxes 126 156
Changes in current assets
and liabilities (115) (109)
Changes in long-term casualty
and environmental reserves (10) (57)
Other net -- (60)
Net cash provided by operating
activities $ 789 $ 578
Investing activities Additions to property and equipment $(698) $(676) Proceeds from property and equipment dispositions 45 35 Other, net (28) (18) Net cash used in investing activities $(681) $(659)
Financing activities
Net increase in commercial paper $ 64 $ 26
Proceeds from issuance of long-term debt 310 224
Payments on long-term debt (346) (88)
Dividends paid (129) (125)
Proceeds from exercise of common
stock options 6 15
Redemption of redeemable preferred stock -- (9)
Other, net (3) (2)
Net cash provided by (used in)
financing activities $ (98) $ 41
Increase (decrease) in cash and
cash equivalents $ 10 $ (40)
Cash and cash equivalents: Beginning of year 17 57 End of year $ 27 $ 17 CONTACT: Burlington Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. Northern Inc., Fort Worth Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Russack, 817/333-6116 |
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