Source: Rob Wilson / Shutterstock.com CSX is upping its quarterly shareholder dividend and full-year financial projections, and instituting a new $1 billion share repurchase program.
Just one day after CSX reported relatively flat profits for the first quarter of 2017 despite a sizable increase in revenues, the company announced it was upping its quarterly shareholder dividend and full-year financial projections, and instituting a new $1 billion share repurchase program.
The company’s board of directors has approved an increase in the quarterly dividend from $0.18 to $0.20, payable on June 15, 2017 to shareholders of record at the close of business on May 31, 2017, and is now projecting earnings per share (EPS) growth of roughly 25 percent for the full year.
In addition, the board approved a new $1 billion share repurchase program, which management expects to complete by the end of the first quarter of 2018, following the successful completion of a previous repurchase plan under which CSX has bought back $2 billion in shares since April 2015.
Harrison, who is well known throughout the railroad industry for leading dramatic turnarounds at Canadian National and Canadian Pacific, was installed as president and CEO in March after a highly public and at times bizarre boardroom battle over compensation and equity benefits Harrison forfeited by leaving CP ahead of schedule.
“Although we are just in the beginning phase of making changes to our network, we are off to a great start,” Harrison said in a statement. “These changes are critical to driving strong, sustainable service for our customers and superior value for our shareholders.”