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Burlington Northern Santa Fe Corp. (BNI) posted a 36% slide in first-quarter net income, hurt by falling freight revenue amid the economic downturn as well as one-time charges stemming mainly from a coal rate settlement.

The No. 2 U.S. railroad by revenue is the latest freight-transport company to reflect the impact of a withering slowdown in freight demand.

Burlington Northern's chief rivals, including Union Pacific Corp. (UNP), CSX Corp. (CSX) and Norfolk Southern Corp. (NSC), also have posted declining first-quarter profits amid falling overall volumes.

Some of the transport companies have voiced optimism that conditions will improve late this year, helped in part by government stimulus spending, although Burlington Northern Chief Executive Matt Rose offered no full-year forecast.

On a conference call with analysts late Thursday, he said the railroad will earn "about" $1 a share in the second quarter if recent volume trends hold steady. The company's first-quarter volume slipped 14%, as measured by rail car loads.

Wall Street currently expects the railroad to earn $1.12 a share in the second quarter, according to Thomson Reuters.

Burlington Northern posted first-quarter net income of $293 million, or 86 cents a share, down from $455 million, or $1.30 a share, a year earlier.

The results included a $96 million, or 19-cent-a-share, charge related to an unfavorable coal rate case decision, as well as an eight-cent-a-share loss to unwind interest rate hedges on debt the company no longer expects to be issued.

Excluding those items, Burlington Northern would have earned $1.13 a share, above Wall Street's consensus forecast for profit of 96 cents a share. But revenue fell 20% to $3.42 billion, compared with $3.68 billion expected by Wall Street.

Still, Burlington Northern shares were up 1.7%, or $1.13, at $68.98 in recent after-hours trading, after closing Thursday's regular session up 2.1% at $67.85.

The railroad reported a 17% decline in total first-quarter freight revenue, attributable to the slide in overall volume.

Revenue from consumer and industrial products decreased 24% and 23%, respectively, while revenue from shipments of agricultural products was off 22%.

Burlington Northern said revenue from coal shipments grew about 1%, excluding the impact of the $96 million rate-related charge, primarily because of improved yields that offset slightly lower unit volumes.

The small increase in coal revenue was in contrast to some rivals that have reported weakness in the once-reliable product, although Burlington Northern said coal demand appears likely to be down going forward.

-By Bob Sechler, Dow Jones Newswires; 512-394-0285; bob.sechler@dowjones.com

(John Kell contributed to this report.)