7061 East Pleasant Valley Road, Independence, Ohio 44131 • (216) 241-2630 / Fax: (216) 241-6516

Membership
Benefits
News and Issues
Departments
Information
Merchandise
Communications
FELA
Events
Links
User Info

CSX announces dividend increase, new share repurchase program and full-year guidance

(Source: CSX press release, April 20, 2017)

JACKSONVILLE, Fla. — CSX Corporation today announced an 11 percent increase in its quarterly dividend, a new $1 billion share repurchase program, and strong financial guidance as it applies the Precision Scheduled Railroading model to its operations.

“Although we are just in the beginning phase of making changes to our network, we are off to a great start,” said E. Hunter Harrison, president and chief executive officer. “These changes are critical to driving strong, sustainable service for our customers and superior value for our shareholders.”

By focusing on these principles, CSX expects to realize record efficiency gains and a step-function improvement in its key financial measures for the year given continued economic growth and stable coal markets. Adjusting for restructuring charges in 2017, these actions are expected to drive a full-year operating ratio in the mid-60s, earnings per share growth of around 25 percent off the 2016 reported base of $1.81, and free cash flow before dividends of around $1.5 billion (see non-GAAP statements below).

Recent changes to the company’s operations have already begun to deliver strong returns and are expected to accelerate in the coming quarters. Given this momentum, the CSX Board of Directors approved an increase in the quarterly dividend from $0.18 to $0.20. The new $0.20 quarterly dividend is payable on June 15, 2017 to shareholders of record at the close of business on May 31, 2017.

In addition, the Board also approved a new $1 billion share repurchase program, which management expects to complete by the end of the first quarter of 2018. This follows the successful completion of CSX’s previous repurchase plan, during which the company bought back $2 billion worth of shares since April 2015.

In line with the company’s balanced approach in deploying capital, CSX now expects to invest $2.1 billion in 2017, including approximately $270 million for Positive Train Control. Of the 2017 investment, more than half will be used to sustain core infrastructure with the balance allocated to projects supporting profitable growth, efficiency initiatives and service improvements.

Thursday, April 20, 2017

Like us on Facebook at
Facebook.com/BLETNational

Sign up for BLET News Flash Alerts

© 1997-2017 Brotherhood of Locomotive Engineers and Trainmen

 


Decertification Helpline
(216) 694-0240

National Negotiations

Sign up for BLET
News Flash Alerts

DAILY HEADLINES

AAR: Rail traffic up 3.9 percent over 2016 for week ending April 15
KCS reports 1Q 2017 income; Sets record for 1Q revenues, carloads, operating income, operating ratio, earnings per share
Report: Pipeline shortage could boost crude by rail activity
CP CEO vows to smooth ‘ruffled feathers’ with new labor contracts
Amtrak CEO says New York City-area railroad troubles will get worse
CSX predicts 25 percent profit jump as restructuring begins
California sells high-speed rail bonds despite lawsuit
Senators, Reps urge MBTA: Negotiate with your workers instead of privatizing
Can Amtrak bar NJ Transit from Northeast Corridor if state withholds rent?
Gov. Christie: ‘I have not heard much about overcrowded trains’
In the breach with Amtrak’s new CEO
After stampede at Penn Station, Amtrak police point to security flaws
KCS CEO: A lot at stake if there’s a ‘bad outcome’ on NAFTA
KCS de Mexico files response to report on competition in Mexican freight rail system
Amtrak’s CIO is on a technology fast track
RRB: Medicare for railroad families
Get the latest labor news from the Teamsters

More Headlines