UPDATE 2-BNSF profit lower; freight volumes weigh

* Q3 EPS $1.36 ex-items vs. Wall St view EPS $1.28

* Total operating revs down to abt $3.6 bln from $4.91 bln

* Sees Q4 EPS $1.10-$1.20

* Shares down 4.3 percent in after-hours trade (Adds estimates, more details, outlook)

SEATTLE, Oct 22 (Reuters) - The No. 2 U.S. railroad, Burlington Northern Santa Fe Corp BNI.N, posted a 30 percent drop in net quarterly profit on Thursday, as freight volumes fell 27 percent, and its shares slid 4.3 percent in after-hours trade.

The Ft. Worth, Texas-based company posted third-quarter net income of $488 million, or $1.42 per share, compared with $695 million or $1.99 per share, a year earlier.

Excluding a benefit from the adjustment of coal rates, its profit of $1.36 per share was above analysts' average expectation for of $1.28 per share, according to Thomson Reuters I/B/E/S.

Total operating revenue declined to nearly $3.6 billion from $4.91 billion a year ago. Freight revenues fell 27 percent in the quarter to $3.49 billion, while coal revenues fell 10 percent on weak demand and mild summer weather, the company said. In each of its business units, revenue also faced lower fuel surcharges, according to BNSF.

The current quarter is following a similar trend as the third quarter, with a seasonal downturn expected around the holidays, company executives said in a conference call.

For the fourth quarter, the company forecast earnings of $1.10 to $1.20 per share.

BNSF said in July that volumes at economically sensitive business units, which it did not specify, have begun to stabilize. The company hauls a variety of commodities such as coal, grain, lumber, construction materials, automobiles and consumer goods.

All U.S. railroads have seen shipments of consumer goods, construction materials and automobiles badly hurt in the recession. But like other major U.S. railroads, BNSF has reported robust profits in recent quarters as strong pricing helped offset falling freight volumes.

Its shares closed at $84.62 on the New York Stock Exchange and fell to $81.00 in after-hours trade. (Reporting by Aarthi Sivaraman; Editing by Leslie Gevirtz and Richard Chang)