SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 22, 1997
BURLINGTON NORTHERN SANTA FE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-11535 41-1804964
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
2650 Lou Menk Drive
Fort Worth, Texas 76131-2830
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (817) 333-2000
(Not Applicable)
(Former name or former address, if changed since last report)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 5. Other Events
Burlington Northern Santa Fe Corporation announced its second quarter 1997
earnings in a July 22, 1997, press release, which press release is
attached as Exhibit 99 and is hereby incorporated by reference.
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Burlington Northern Santa Fe Corporation
(Registrant)
By: /s/ Thomas N. Hund
Thomas N. Hund
Vice President and Controller
(On behalf of the Registrant
and as Principal Accounting Officer)
Schaumburg, Illinois
July 22, 1997
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BURLINGTON NORTHERN SANTA FE CORPORATION
INDEX OF EXHIBITS
Exhibit
Number Description of Exhibit
99 Burlington Northern Santa Fe Corporation Press Release
dated July 22, 1997.
E-1
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EXHIBIT 99
Contact: Richard Russack FOR IMMEDIATE RELEASE
(817) 352-6425
BURLINGTON NORTHERN SANTA FE REPORTS
IMPROVED SECOND QUARTER RESULTS
. Net income of $235 million or $1.50 per share for the quarter ended
June 30, 1997 -- up 11 percent from net income of $211 million or $1.35
per share compared with 1996.
. Second-quarter operating income was $459 million -- $41 million or 10
percent higher than a year ago.
. Operating ratio for the second quarter improved to 77.9 percent compared
with 79.3 percent in 1996.
FORT WORTH, TEXAS, July 22, 1997 - - Burlington Northern Santa Fe
Corporation (BNSF) (NYSE: BNI) today reported second quarter 1997 net income
of $235 million, or $1.50 per share, compared with second quarter 1996 net
income of $211 million, or $1.35 per share.
"The Company has rebounded well from the weather-related difficulties of
the first quarter," said Robert D. Krebs, chairman, president and chief
executive officer of BNSF. "We expect our results to continue to improve
throughout the balance of 1997."
Revenues of $2.07 billion for the second quarter 1997 were $49 million
higher than second quarter 1996. Intermodal revenues of $563 million
increased $60 million or 12 percent with increases in all sectors.
Merchandise revenues of $683 million increased $39 million or 6 percent,
driven by growth in the chemicals, forest products and minerals
business segments. Agricultural commodity revenues declined by $28 million
or 10 percent reflecting a poor Southern Plains wheat crop and fewer corn
shipments. Coal revenues declined $8 million or 2 percent.
more . . .
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BNSF 2Q EARNINGS / Page Two
Second quarter 1997 operating expenses of $1.61 billion were essentially
even with the prior year period, principally reflecting higher compensation
and benefits, equipment rents, and purchased services offset by lower
material and other costs.
Operating income was $459 million for the second quarter 1997 compared
with $418 million for the same period in 1996. The operating ratio improved
to 77.9 percent for the second quarter 1997 compared with 79.3 percent a year
earlier. Interest expense increased $12 million to $85 million, reflecting
higher debt levels.
SIX-MONTH 1997 RESULTS
BNSF net income for the six-months ended June 30, 1997, was $385 million,
or $2.45 per share, compared with 1996 net income for the same period of $398
million, or $2.56 per share. Revenues for the first six months were $4.11
billion, up slightly from the $4.05 billion reported for the same period in
1996. Operating expenses of $3.32 billion for 1997 increased 2 percent from
1996 expenses.
Through The Burlington Northern and Santa Fe Railway Company, BNSF owns
one of the largest railroad networks in the United States, with 35,000 route
miles covering 29 states and two Canadian provinces, approximately 7,900 route
miles of which consist of trackage rights.
Consolidated financial statements follow.
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<CAPTION>
BURLINGTON NORTHERN SANTA FE CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Unaudited. In millions, except per share data)
<BTB>
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -----------------
1997 1996 1997 1996
<S> <C> <C> <C> <C>
REVENUES $ 2,073 $ 2,024 $ 4,109 $ 4,051
----- ----- ----- -----
OPERATING EXPENSES
Compensation and benefits 652 638 1,345 1,306
Purchased services 220 216 448 439
Equipment rents 201 183 401 361
Depreciation and amortization 189 187 379 374
Fuel 186 184 382 352
Materials and other 166 198 366 416
----- ------ ------ ------
Total Operating Expenses 1,614 1,606 3,321 3,248
----- ------ ------ ------
OPERATING INCOME 459 418 788 803
Interest Expense 85 73 169 148
Other Income (Expense) - Net - (1) (3) (5)
----- ------- ------- ------
Income Before Income Taxes 374 344 616 650
Income Tax Expense 139 133 231 252
----- ------- ------- -----
INCOME $ 235 $ 211 $ 385 $ 398
===== ======= ======= =====
NET INCOME PER COMMON SHARE $ 1.50 $ 1.35 $ 2.45 $ 2.56
===== ====== ======= =====
AVERAGE SHARES OUTSTANDING 157.2 156.1 157.2 155.6
(IN MILLIONS)
===== ====== ======= ======
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<TABLE>
<CAPTION>
BURLINGTON NORTHERN SANTA FE CORPORATION
(Unaudited. In millions)
CONDENSED CONSOLIDATED BALANCE SHEET
June 30, December 31,
1997 1996
<BTB> -------- -----------
ASSETS
<S> <C> <C>
Cash and cash equivalents $ 42 $ 47
Other current assets 1,244 1,201
----- -----
Total current assets 1,286 1,248
Properties and other assets 19,069 18,515
------ ------
Total Assets $20,355 $19,763
====== ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 1,959 $ 2,228
Long-term debt and commercial paper 4,935 4,546
Deferred income taxes 4,894 4,729
Other liabilities 2,225 2,279
Stockholders' equity 6,342 5,981
------ -----
Total Liabilities and Stockholders' Equity $20,355 $19,763
====== ======
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<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Three Months Six Months
Ended June 30, Ended June 30,
------------- ------------
1997 1996 1997 1996
---- ----- ----- -----
<BTB>
<S> <C> <C> <C> <C>
Cash Provided by Operating Activities $ 560 $ 408 $ 633 $ 713
Cash Used for Capital Expenditures (549) (468) (845) (822)
Net Proceeds of Borrowings 38 78 322 64
Dividends Paid (46) (45) (92) (93)
Proceeds from Stock Options 31 39 50 95
Cash Provided by (Used) for
Other Activities (39) (22) (73) 17
------ ----- ------ ------
Decrease in Cash and Cash Equivalents $ (5) $(10) $ (5) $ (26)
====== ===== ====== ======
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<TABLE>
<CAPTION>
BURLINGTON NORTHERN SANTA FE CORPORATION
Supplemental Data
(Unaudited)
<BTB>
Three Months Six Months
Ended June 30, Ended June 30,
------------------ --------------------
1997 1996 1997 1996
--------- -------- ---------- ----------
Revenues (In millions)
<S> <C> <C> <C> <C>
Coal $ 482 $ 490 $ 971 $ 968
Agricultural Commodities 239 267 531 607
Intermodal 563 503 1,090 994
Automotive 108 110 215 208
Merchandise
Chemical 212 199 403 386
Forest Products 147 138 283 273
Consumer Goods 128 122 246 237
Metals 105 103 206 208
Minerals 91 82 165 154
------- ------ ------ -----
Total Freight Revenue 2,075 2,014 4,110 4,035
Other Revenue (2) 10 (1) 16
-------- ------ ----- -----
Total Revenues $ 2,073 $2,024 $4,109 $4,051
======= ====== ===== =====
Operating ratio 77.9% 79.3% 80.8% 80.2%
Revenue ton miles (billions) 103.8 101.9 203.4 203.1
Freight revenue per thousand
revenue ton miles $ 19.99 $ 19.77 $ 20.20 $ 19.87
Cars/Units (thousands) 1,784 1,727 3,509 3,435
Average freight revenue
per car/unit $ 1,163 $ 1,166 $ 1,171 $ 1,175
Employees (average) 43,661 44,338 42,672 43,746
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