Friday, May 21, 2010

CP increases capital spending for 2010

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The board of directors of Canadian Pacific Railway on Thursday approved a C$70 million (US$66 million) increase in capital spending in 2010. CP now plans to invest between C$750 million and C$800 million (US$710 million and US$757 million) on capital improvement programs this year.

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The board also declared an increase in CP’s next quarterly dividend to C$0.27 per share from C$0.2475 per share, payable on July 26, 2010, to holders of record at the close of business on June 25, 2010.

“The improving economy, our strong balance sheet and solid earnings and free cash flows have enabled us to expand our capital programs totake advantage of growth and productivity opportunities,” said Executive Vice President and Chief Financial Officer Kathryn McQuade. “CP’s strong franchise showed resilience through the recession and this dividend increase continues our trend of dividend growth aligned with earnings growth.”