Burlington Northern cuts view on floods, fuel

NEW YORK (Reuters) - Burlington Northern Santa Fe Corp (BNI.N) on Wednesday became the latest U.S. transport company to warn that earnings would miss forecasts because of severe flooding in the U.S. Midwest and rising fuel costs.

Burlington Northern, the No. 2 railroad in the United States, lowered its second-quarter profit outlook, citing flooded tracks and damaged infrastructure that cannot be repaired until the water recedes.

"In addition ... fuel prices have continued to rise and are now significantly above the level assumed when BNSF provided second-quarter earnings guidance," the company said in a filing with the U.S. Securities and Exchange Commission.

Burlington Northern said it expected a second-quarter profit of $1.30 per share compared with $1.20 per share a year ago. Analysts polled by Reuters Estimates had expected second-quarter profit of $1.39 per share.

The company's outlook excludes charges from a jury verdict in Minnesota stemming from a 2003 crossing accident and possible costs from lawsuits in Montana concerning environmental cleanup.

In April, the railroad operator said it expected second-quarter earnings-per-share percentage growth in the "high teens."

BNSF shares closed up 97 cents at $103.18 on the New York Stock Exchange, but slipped to $100.60 in extended trading.

UNION PACIFIC

On Tuesday, Union Pacific Corp (UNP.N), the No. 1 U.S. railroad, said that network outages and disruptions caused by severe weather would reduce its second-quarter earnings per share estimate by about $0.05 per share.