(The following article by Katherine Yung was posted on the Dallas Morning News website on February 15.)
DALLAS, Texas — Burlington Northern Santa Fe Corp. said Wednesday that it has added 30 million shares to its share repurchase program. The Fort Worth-based railroad has repurchased more than 165 million shares since 1998, reducing shares outstanding by 25 percent.
It also said that its credit statistics, such as interest coverage and debt-to-cash flow, have improved to the point that it now plans to devote additional financial capacity to share repurchases.
The change in approach will result in a moderately higher level of debt, but the railroad did not provide any specifics.
Burlington Northern shares gained $3.05, or 3.8 percent, to $83.65.