934612--2/16/2007--BURLINGTON_NORTHERN_SANTA_FE_CORP

related topics
{cost, regulation, environmental}
{operation, natural, condition}
{cost, operation, labor}
{condition, economic, financial}
{competitive, industry, competition}
{system, service, information}
{personnel, key, retain}
{regulation, government, change}
The Company faces intense competition from rail carriers and other transportation providers, and its failure to compete effectively could adversely affect its results of operations, financial condition or liquidity. A downturn in the economy or change in government policy could negatively impact demand for the Company s services. As part of its railroad operations, the Company frequently transports chemicals and other hazardous materials. Future acts of terrorism or war, as well as the threat of war, may cause significant disruptions in the Company s business operations. The Company is subject to stringent environmental laws and regulations, which may impose significant costs on its business operations. The Company s future success depends on its ability to continue to comply with the significant federal, state and local governmental regulations to which it is subject. The availability of qualified personnel and an aging workforce may adversely affect the Company s operations. Most of the Company s employees are represented by unions, and failure to successfully negotiate collective bargaining agreements may result in strikes, work stoppages, or substantially higher ongoing labor costs. Severe weather and natural disasters could disrupt normal business operations, which would result in increased costs and liabilities and decreases in revenues. Fuel supply availability and fuel prices may adversely affect the Company s results of operations, financial condition or liquidity. The Company depends on the stability and availability of its information technology systems. Personal injury claims constitute a significant expense, and increases in the amount or severity of these claims could adversely affect the Company s operating results.

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