Burlington Northern Santa Fe Reports Third Quarter 2008 Results

Market Wire, October, 2008

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI)

--  Quarterly earnings were $2.00 per diluted share, which included a
    $0.09 per share impact related to a favorable tax settlement. This compares
    to third-quarter 2007 earnings of $1.48 per diluted share.

--  Freight revenues increased $818 million, or 21 percent, to $4.77
    billion compared with the third quarter of 2007, and included higher fuel
    surcharges of approximately $570 million.

--  Operating income of $1.21 billion increased $206 million, or 21
    percent, compared with the same 2007 period.
    

Burlington Northern Santa Fe Corporation (BNSF) (NYSE: BNI) today reported quarterly earnings of $2.00 per diluted share, compared with third-quarter 2007 earnings of $1.48 per diluted share.

"The U.S. and global economies are facing very significant challenges. Despite the economic uncertainty, BNSF continues to perform well. In the third quarter, BNSF achieved our best quarterly earnings per share in the history of the Company," said Matthew K. Rose, BNSF Chairman, President and Chief Executive Officer. "While we are all concerned about the current financial and economic situation, we continue to be optimistic about the future of our diverse franchise and we remain confident about our long-term prospects."

Third-quarter 2008 freight revenues increased $818 million, or 21 percent, to $4.77 billion compared with $3.95 billion in the prior year. The 21-percent increase in revenue was primarily attributable to improved yields and an increase in fuel surcharges of approximately $570 million driven by higher fuel prices.

Agricultural Products revenues were up $227 million, or 33 percent, to $909 million, predominately due to strong unit volumes in ethanol, corn and feeds and improved yields. Coal revenues rose $198 million, or 23 percent, to $1.05 billion, as a result of higher unit volumes, contractual inflation escalators and improved yields. Industrial Products revenues of $1.12 billion were $162 million, or 17 percent higher than the third quarter of 2007. Improved yields and increased demand for construction products more than offset the lower unit volumes for both building products and chemicals and plastic products. Consumer Products revenues rose $231 million, or 16 percent, to $1.69 billion due mainly to growth in domestic intermodal unit volumes and improved yields, offset by lower international intermodal unit volumes. Increased fuel surcharges driven by higher fuel prices further benefited each of the business units.

Operating expenses for the third quarter of 2008 were $3.70 billion compared with third-quarter 2007 operating expenses of $3.07 billion. The $631 million increase in operating expenses was primarily driven by a $501 million increase in fuel expense due to higher fuel prices on relatively flat fuel consumption.

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 .

Financial information follows: