CSX to Buy Back $1 Bln. in Stock

Eastern freight railroad CSX Corp. said Tuesday it will repurchase an additional $1 billion in its stock, boost its dividend 25% and make significant capital expenditures over the next four years, the Associated Press reported.

The additional repurchases will raise CSX’s buyback program to $3 billion, AP said.
 
CSX said it will boost its quarterly dividend beginning in September to 15 cents a share, from 12 cents, and invest $6.4 billion in its operations over the next four years.

CSX will spend $1.5 billion in 2007, $1.6 billion in 2008 and 2009, and $1.7 billion in 2010 to meet increased freight demand, AP reported. It will spend the money on new track, equipment, technology and facilities.
 
“These actions emphasize our confidence in the earnings power of CSX businesses as demand for our rail and intermodal services is robust and expected to grow,” Chairman and Chief Executive Officer Michael Ward said in a statement.