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BNSF Had A Good Year In 2021

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BNSF Had A Good Year In 2021
Posted by kgbw49 on Sunday, February 27, 2022 11:32 PM

The only non-PSR railroad on the continent had a very good year in 2021.

$22.5 billion in revenue topped all carriers and was just short of the "hot economy" year of 2019's $22.7 billion.

Were it not for port congestion revenue would have been higher.

Net Income of $5.99 billion transferred to Berkshire Hathaway was an all time high.

Net Income was 27% of revenue.

Carloads of 10.1 million were just short of 2019's 10.2 million.

Railroad operating expenses of $13.7 billion were 60.9% of revenues.

Capital investment was $2.9 billion.

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Posted by CMStPnP on Monday, February 28, 2022 6:52 AM

kgbw49
Net Income of $5.99 billion transferred to Berkshire Hathaway was an all time high.

Right, however, total income was $8.8 Billion according to Trains.    So above $5.9 represents dividends.

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Posted by kgbw49 on Monday, February 28, 2022 7:21 AM

I read through the Berkshire Hathway Management Discussion and Analysis from their 2021 year-end report.

Lots of good stuff in there.

https://www.berkshirehathaway.com/2021ar/2021ar.pdf

Operating income was indeed $8.8 billion, before interest, taxes, depreciation and amortization.

$5.99 billion was bottom line Net Income for BNSF, which rolls up into Berkshire Hathaway's comprehensive Net Income.

CEO Katie Farmer knows her railroading!

 

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Posted by BaltACD on Monday, February 28, 2022 8:15 AM

Be sure to buy some shares of Berkshire-Hathaway - they are only $479,345.00 a share as of Friday's close.

Never too old to have a happy childhood!

              

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Posted by SD60MAC9500 on Monday, February 28, 2022 1:52 PM
 

BaltACD

Be sure to buy some shares of Berkshire-Hathaway - they are only $479,345.00 a share as of Friday's close.

 

BRK Class A may be out of reach however...

BRK Class B is currently trading @ $317.88/Share

 
Rahhhhhhhhh!!!!
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Posted by BaltACD on Monday, February 28, 2022 2:22 PM

SD60MAC9500
 
BaltACD

Be sure to buy some shares of Berkshire-Hathaway - they are only $479,345.00 a share as of Friday's close. 

BRK Class A may be out of reach however...

BRK Class B is currently trading @ $317.88/Share

But who wants to be thought of as only Class B when there is a Class A

Never too old to have a happy childhood!

              

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Posted by diningcar on Monday, February 28, 2022 3:14 PM

Me for one, I have had 1000 shares for many years; I bought at $644.

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Posted by BaltACD on Monday, February 28, 2022 3:19 PM

diningcar
Me for one, I have had 1000 shares for many years; I bought at $644.

Class A at $644 or Class B.  One is a winner, one is not.

If it was Class A - you are the one everyone is looking for to finance all the restoration projects.

Never too old to have a happy childhood!

              

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Posted by diningcar on Monday, February 28, 2022 6:00 PM

mine has quadrupled so you figure it out.

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Posted by mudchicken on Monday, February 28, 2022 6:14 PM

Unfortunately that is all tempered by an unacceptable fatality rate. (all operating craft)

Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west
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Posted by kgbw49 on Monday, February 28, 2022 6:19 PM

I am thinking he bought before the Class B shares were split 1-50 in 2010.

Class B shares were introduced in 1996 at 1/30 the price of a Class A share, or about $1,000. (Class A was worth about $30,000 at the time.)

In 2010, the stock split to be worth 1/1500 the price of a Class A share, which was about $90,000 give or take at the time of the split. Before the split, your Class B share at 1/30 of the Class A would have been worth $3,000.

But in 2010 after the 1/1500 split you would have suddenly had 50 shares worth $60 each (Still worth $3,000 total.) ($60 is 1/1500 of $90,000.)

BH Class B shares closed today at $321.45, so today those 50 shares are worth $16,072.50.

So if you had purchased 1 share of Class B at $1,000 back in 1996, it would have grown to $3,000 in 2010 by the split, and then grown again with 50 smaller shares to $16,072.50 today.

For your initial $1,000, you now have another $15,072.50 on top of the $1,000 investment today if you bought a BH Class B share back in 1996.

https://www.investopedia.com/ask/answers/021615/what-difference-between-berkshire-hathaways-class-and-class-b-shares.asp

Fun stuff!

 

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Posted by jeffhergert on Tuesday, March 1, 2022 11:57 AM

BNSF may not be doing everything in the PSR playbook, but they are doing a lot of the drastic cost cutting PSR entails.  Their new attendence policy is PSR inspired.

I would not call them a non-PSR class one.

Jeff

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Posted by Murphy Siding on Tuesday, March 1, 2022 12:41 PM

jeffhergert

BNSF may not be doing everything in the PSR playbook, but they are doing a lot of the drastic cost cutting PSR entails.  Their new attendence policy is PSR inspired.

I would not call them a non-PSR class one.

Jeff

 

I was just going to suggest that BNSF do some PSR type stuff, just to be like the other guys.Mischief

Is the BNSF attendance policy PSR inspired, or just plain, old Ebeneezer Scrooge inspired?

Thanks to Chris / CopCarSS for my avatar.

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Posted by BaltACD on Tuesday, March 1, 2022 2:34 PM

Murphy Siding
 
jeffhergert

BNSF may not be doing everything in the PSR playbook, but they are doing a lot of the drastic cost cutting PSR entails.  Their new attendence policy is PSR inspired.

I would not call them a non-PSR class one.

Jeff 

I was just going to suggest that BNSF do some PSR type stuff, just to be like the other guys.Mischief

Is the BNSF attendance policy PSR inspired, or just plain, old Ebeneezer Scrooge inspired?

Who do you thing inspired EHH in coining the PSR ways - Ebeneezer hisself.

Recalls a quote attributed to Mike Ditka about George Halas - "Throws around nickels like they were manhole covers."

Never too old to have a happy childhood!

              

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Posted by jeffhergert on Wednesday, March 2, 2022 3:29 PM

Murphy Siding

 

 
jeffhergert

BNSF may not be doing everything in the PSR playbook, but they are doing a lot of the drastic cost cutting PSR entails.  Their new attendence policy is PSR inspired.

I would not call them a non-PSR class one.

Jeff

 

 

 

I was just going to suggest that BNSF do some PSR type stuff, just to be like the other guys.Mischief

Is the BNSF attendance policy PSR inspired, or just plain, old Ebeneezer Scrooge inspired?

 

 

These attendence policies are designed to reduce the number of active employees needed.  Every employee furloughed is one less to provide benefits for.

Jeff

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Posted by tree68 on Wednesday, March 2, 2022 5:05 PM

jeffhergert
These attendence policies are designed to reduce the number of active employees needed.  Every employee furloughed is one less to provide benefits for.

Hence the long-standing concept that it's cheaper to pay overtime than to hire another employee.

LarryWhistling
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Posted by BaltACD on Wednesday, March 2, 2022 5:43 PM

tree68
 
jeffhergert
These attendence policies are designed to reduce the number of active employees needed.  Every employee furloughed is one less to provide benefits for. 

Hence the long-standing concept that it's cheaper to pay overtime than to hire another employee.

And if you make employees 'Officials' and put them on salary you don't have to pay Overtime.

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Posted by jeffhergert on Wednesday, March 2, 2022 9:33 PM

tree68

 

 
jeffhergert
These attendence policies are designed to reduce the number of active employees needed.  Every employee furloughed is one less to provide benefits for.

 

Hence the long-standing concept that it's cheaper to pay overtime than to hire another employee.

 

What happens is the more employees work, then they may run up against the RSIA requirement for 48 or 72 hours after working 6 or 7 consecutive job starts.  That removes people temporarily from being available.  A consecutive start is one where one goes on duty less than 24 hours after released from previous duty.  Not all on duty time is counted.  Only "covered" service, where one performs service.  Deadheading from one terminal to another without any other service, for example, doesn't count.  That usually will allow a 24 or more hour break, allowing an employee to reset.     

Many employees have applied and received Family Medical Leave.  Time taken off under FMLA can't be counted against an employee under the attendence policies.  The railroads hate it.

When they keep the boards tight and Federal required rest or people are off FMLA, in addition to those off compensated or just off and taking the policy hits, all of a sudden trains sit waiting for crews.  One time I was first out for 12 hours waiting to go to work because there wasn't a conductor available.  A couple times when one was about to become rested, they layed off.  (While I understood the why, conductors working on their rest almost constantly, it meant I went to work at 2am instead of 2pm.  I didn't care for that aspect of it.)

Jeff    

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Posted by SD70Dude on Thursday, March 3, 2022 12:52 AM

BaltACD
tree68
jeffhergert
These attendence policies are designed to reduce the number of active employees needed.  Every employee furloughed is one less to provide benefits for. 

Hence the long-standing concept that it's cheaper to pay overtime than to hire another employee.

And if you make employees 'Officials' and put them on salary you don't have to pay Overtime.

Around here they go on kicks about not paying overtime every so often.  Then the work doesn't get done and they have to call extra crews.  Or not, and the work just builds up waiting for another regular crew, who then doesn't have time to serve their customers.  

I guess if we drive away business there won't be as much work and the 'no OT' plan will be considered a success.  And then the manager who came up with it will get a big bonus or promotion, which is really what matters.

Greetings from Alberta

-an Articulate Malcontent

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Posted by CMStPnP on Thursday, March 3, 2022 6:29 AM

BaltACD
And if you make employees 'Officials' and put them on salary you don't have to pay Overtime.

Verizon (crap company) does that with IT workers, HR classifies them all as "Managers" vs. "Employees".    You find out about this after your hired and they never mention it on the interview and at first you think, hey that is great until you learn why.   If your classified as "Manager" the company can require you as Manager to cross a picket line (become a scab) and fill in for a striking worker and if you refuse they can fire you on the spot.   Prior to an expected strike they assign you to a shadow supervisor who is the striking workers supervisor whom you will fill in for.    Again if you refuse or do not show up, they will fire you.    I told them up front after I learned of this that I would never cross a picket line, my immediate manager whom was friendly to me told me just by making that declaration I could be terminated and I should just keep that to myself unless there was a strike and I wanted to stick to my priciples over keeping the job.    I always thought that was crappy about Verizon and other Telco companies to do this.    Also Verizon would openly discriminate against Military folks, figuring out how to pass on their hire or terminate them during or after their first deployment (another one of their crappy HR policies).    Even though illegal they found a loophole to use which was the job of the deployed military person was eliminated and was not transferrable or some such nonsense.    All they would do there is change the job title.    Made me sick they were sometimes heralded as a military friendly employer.    Then the rampant abuse of the H1b Visa program as well.     The company is run by a bunch of crooks in my opinion.

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Posted by SFbrkmn on Wednesday, March 16, 2022 9:39 PM

BNSF is a PSR user just as all carriers are. 

 

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Posted by tree68 on Thursday, March 17, 2022 6:42 AM

SFbrkmn

BNSF is a PSR user just as all carriers are. 

We don't seem to hear of the drastic cuts at BNSF that we have from those carriers who have otherwise actively adopted PSR.

LarryWhistling
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Posted by BaltACD on Thursday, March 17, 2022 7:19 AM

tree68
 
SFbrkmn

BNSF is a PSR user just as all carriers are.  

We don't seem to hear of the drastic cuts at BNSF that we have from those carriers who have otherwise actively adopted PSR.

Recently we have been hearing of a draconian attendance policy on BNSF.  PSR has many implementations on different aspects of a company's operation.

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Posted by tree68 on Thursday, March 17, 2022 7:33 AM

BaltACD
Recently we have been hearing of a draconian attendance policy on BNSF.  PSR has many implementations on different aspects of a company's operation.

True that.

LarryWhistling
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Posted by jeffhergert on Thursday, March 17, 2022 10:07 AM

BNSF seems to enjoy a cult-like, can-do-no-wrong status among railfans.  I think it's because of the popularity of the former AT&SF part of BNSF.  Also playing into it is the similar cult-like, can-do-no-wrong of Warren Buffet.  Seen as a kinder, gentler, benevolent multi-billionaire.  

Now, in many respects BNSF does better in many categories than UP.  But it's still a class one and a business.  Being wholly owned by Bershire Hathaway, they may not have to deliver the expected yesterday/huge returns Wall Street big whigs demand, but they still want to maximize returns on their investment.

Jeff  

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