BNSF Railroad Announces Layoffs Despite Higher-Than-Expected Profits

http://nebraska.statepaper.com/vnews/display.v/ART/2009/01/23/4979f232a0223

January 23, 2009

Profits are up but traffic volume is down, so a lot of employees are being laid off by the Burlington Northern Sanfa Fe railroad – including 101 in Lincoln and 68 in Alliance.


In its fourth-quarter report issued Wednesday, BNSF said it enjoyed a 19 percent net increase in earnings because fuel was cheaper, but it was also hurt because demand for shipments dropped in the weakening economy, including the automotive sector. Revenues increased by $4.37 billion, or 3 per cent.


The railroad began layoffs about two weeks ago. On Wednesday, BNSF said it would layoff some 2,500 workers nationwide, representing 5 percent of its work force. BNSF said it has approximately 4,500 employees in Nebraska, including more than 1,800 in Lincoln, and 1,700 in Alliance.

The layoffs come at a time when BNSF is on the verge of surpassing Union Pacific as the nation’s biggest railroad in terms of revenue. BNSF reported a 23 percent increase in fourth-quarter net earnings at $615 million or 1.79 per share, up from $517 million and $1.46 per share a year ago.

The economic debacle was reflected in the railroad’s 5 percent decline in shipments of consumer products, including motor vehicles. Shipment of industrial products also declined, which covers everything from food and beverages to construction materials and chemicals, including petroleum.


FULL story at link.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=3703290&mesg_id=3703290

These are hard indicators of the down economy.

I hear CSX will wait a while because of FL's fund for them.