| The Company did not repurchase shares during 1Q09. During the three months ended March 31, 2009, the Company acquired shares from employees at a cost of $4.0 million to satisfy tax withholding obligations. Free cash flow during 1Q09 was approximately $207.0 million versus $60.0 million in 1Q08. Management reduced its planned 2009 capital expenditure expectation by approximately $100.0 million to $2,600.0 million from a prior guidance of $2,700.0 million, reflecting lower expansion capital and better labor productivity on capital projects. The Company said that about half, or $50.0 million, of the planned spending reduction will come out of its maintenance budget, which for 2009 now accounts for about $1.850 million of the total. Cash capital expenditures were $462.0 million. At the end of 1Q09, net debt was $9,081 million, including $610.0 million in cash and cash equivalents.
During 1Q09, the Company entered into a 12-year capital lease to finance $368.0 million of locomotives and freight cars. Additionally, it entered into capital leases totaling $27.0 million to finance maintenance of way and other vehicles/equipment with lease terms of five to seven years. It took delivery of 130 locomotives under a long-term commitment. As of March 31, 2009, BNSF’s remaining commitment was to acquire 738 locomotives by 2013.
The Company expects to spend about $2.0 billion in 2009 to keep the railway's infrastructure strong by upgrading technologies and refreshing track, signal systems, structures and freight cars.
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