Union Pacific Announces Dividend Increase and Additional Growth Capital
Share Repurchases Also Planned
Omaha, Neb., May 06, 2010 Union Pacific Corporation (NYSE: UNP) announced that its Board of Directors voted today to increase the quarterly dividend on the company's common shares by 22 percent to 33 cents per share. The increased dividend is payable July 1, 2010, to stockholders of record on May 28, 2010.
"Two weeks ago Union Pacific reported record first quarter earnings, evidence that we are emerging from the challenge of last year's recession as a stronger, more profitable company," said Jim Young, Union Pacific chairman and chief executive officer. "With business volumes continuing to grow, we feel very positive about the long-term fundamentals of our business as well as UP's strategy to make the most of these opportunities. As a result, we are generating solid free cash flows and have confidence going forward that we are taking the right steps to capitalize on our growth opportunities and reward our shareholders."
The Board also approved a $100 million increase in growth capital spending in 2010, bringing the full year 2010 investment to $2.6 billion, primarily to acquire additional intermodal equipment and support our intermodal strategy.
"UP's domestic intermodal business grew 8 percent last year during one of the worst recessions in decades, as our record service performance attracted new business to our railroad," Young said.
In addition, Union Pacific plans to resume share repurchases on an opportunistic basis under its existing program, which authorizes purchases of up to 32.6 million shares by March 31, 2011. Timing and volume of share repurchases will be at the discretion of management. Any share repurchase under this program may be made in the open market, or otherwise.
Union Pacific has paid dividends on its common stock for 111 consecutive years.
About Union Pacific
Union Pacific Corporation owns one of America's leading transportation companies. Its principal operating company, Union Pacific Railroad, links 23 states in the western two-thirds of the country. Union Pacific serves many of the fastest-growing U.S. population centers and provides Americans with a fuel-efficient, environmentally responsible and safe mode of freight transportation. Union Pacific's diversified business mix includes Agricultural Products, Automotive, Chemicals, Energy, Industrial Products and Intermodal. The railroad emphasizes excellent customer service and offers competitive routes from all major West Coast and Gulf Coast ports to eastern gateways. Union Pacific connects with Canada's rail systems and is the only railroad serving all six major gateways to Mexico, making it North America's premier rail franchise.
Investor contact is Jennifer Hamann, (402) 544-4227.
Media contact is Donna Kush, (402) 544-3753.
This press release and related materials contain statements about the Corporation's future that are not statements of historical fact, including specifically the Corporation's statements regarding its long-term business fundamentals and its ability to take advantage of business opportunities; its ability to capitalize on growth opportunities and reward shareholders and plans to repurchase shares, which may be discontinued in the future. These statements are, or will be, forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements also generally include, without limitation, information or statements regarding: projections, predictions, expectations, estimates or forecasts as to the Corporation's and its subsidiaries' business, financial, and operational results, and future economic performance; and management's beliefs, expectations, goals, and objectives and other similar expressions concerning matters that are not historical facts.
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