Burlington Northern Sees First Quarter Slightly Below Estimates
Chris Frankie
04/04/01 - 03:34 PM EDT
Burlington Northern Santa Fe (BNI Quote) expects first-quarter earnings to fall slightly below Wall Street's estimates, citing the softness in the U.S. economy and revenue that will come in flat with last year's top line.
Analysts polled by
Thomson Financial/First Call are expecting the company to earn 49 cents in the first quarter. The company earned 55 cents in the year-ago period.
The railroad transportation company also said it would take a $6 million charge for the early retirement of debt. Additionally, Burlington plans to eliminate $100 million of capital and other investments, mostly earmarked for expansion and other discretionary projects.
"Without these charges, we expect first-quarter earnings per share to be within the range of analysts' expectations, but slightly below consensus," the company said in a statement.
Shares of Burlington Northern, which is based in Fort Worth, Texas, dropped 19 cents, or 0.6%, to $29.49 in recent
New York Stock Exchange trading.
