CSX announced that its directors have approved a 3-for-1stock split, a 38% increase in the quarterly dividend on its common stock, anda $2 billion share buyback program.
"These actions reflect the success of CSX and itsconfidence in the future," said Michael J. Ward, chairman, president, andchief executive officer. "They build upon the $2 billion investment CSX ismaking this year to meet the nation's future transportation needs and drivelong-term shareholder value."
He noted that from the beginning of 2006 to the end of 2010,CSX invested $8.3 billion in its business, raised its dividend 300%, andrepurchased $5.6 billion worth of shares.
"The financial strength of CSX has allowed the companyto use a balanced approach to deploying cash while also improving its creditprofile," said Oscar Munoz, executive vice president and chief financialofficer.
The new quarterly dividend of $0.36, or $0.12 on apost-split basis, is payable on June 15, 2011 to shareholders of record at theclose of business on May 31, 2011. The stock split will be for all shareholdersof record at the close of business on May 31, 2011 with a distribution date ofJune 15, 2011. The new share buyback program is authorized to begin immediatelyand is expected to be completed by year-end 2012. Under the program, thecompany may purchase shares from time to time on the open market, through blocktrades or otherwise.