UPDATE 2-Economy, charges take bite out of BNSF Q1 profit

* Q1 EPS $1.13/shr ex-charges, vs consensus 96 cents
* EPS 96 cents/shr including charges
* Rail car volumes fell more than 14 pct
* Shares up 1.7 pct in extended trading

(Adds details of results, stock action, executive comment)
CHICAGO, April 23 (Reuters) - No. 2 U.S. railroad
Burlington Northern Santa Fe Corp reported a
better-than-expected net profit despite a drop in freight
volumes due to the U.S. recession, sending its shares up 1.7
percent in after-hours trading.
The Ft Worth, Texas-based company reported on Thursday
first-quarter net income of $293 million or 86 cents per share,
compared with $455 million or $1.30 a share a year earlier.
Excluding charges, the company earned $1.13 per share.
On that basis, analysts on average had expected earnings
per share for the quarter of 96 cents, according to Reuters
Estimates.
"During the first quarter of 2009, BNSF's focus on cost
control and a variable cost structure enabled us to weather a
difficult economic environment," Chief Executive Matthew Rose
said in a statement.
BNSF said revenue in the quarter fell to $3.42 billion from
$4.26 billion. Analysts had expected revenue of $3.66 billion.
The railroad reported a decline in the number of loaded
rail cars of more than 14 percent.
Freight volumes in all BNSF's business groups declined,
with automotive showing the greatest decline (46.2 percent) and
coal showing the smallest drop (1.1 percent).
The U.S. auto industry is experiencing its worst sales in
decades, with Chrysler LLC -- controlled by private-equity
group Cerberus Capital Management LP [CBS.UL] -- and General
Motors Corp working to stave off bankruptcy.
Like the other major U.S. railroads, Union Pacific has
posted robust profits despite weak freight volumes thanks to
strong pricing power. Analysts have worried that precipitous
declines in volumes so far this year will undermine the
railroads' ability to keep raising prices.
Last week the Association of American Railroads said rail
car loads were down 17.2 percent for the first 14 weeks of
2009.
In after-hours trade, BNSF shares were up 1.7 percent at
$68.98 from their Thursday closing price of $67.85 on the New
York Stock Exchange.
(Reporting by Nick Carey, editing by Tim Dobbyn)
((email: nick.carey@thomsonreuters.com; +1-312-408-8756))
Keywords: BNSF/

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