(The Associated Press circulated the following on June 3.)
NEW YORK — Railroad operator CSX Corp. on Tuesday reaffirmed its earnings growth predictions through 2010 as it again urged shareholders to fight a board takeover by two activist hedge funds.
The company still expects earnings per share to grow by 18 to 21 percent per year through 2010. The company earned $2.99 per share last year.
In its latest letter to shareholders, CSX (nyse: CSX – news – people ) Chairman, President and Chief Executive Michael J. Ward defended the company’s performance and continued to urge shareholders to vote against a board slate nominated by the hedge funds – TCI, which manages The Children’s Investment Master Fund, and 3G Capital.
“The TCI Group’s leadership offers a hand-picked block of nominees and admits to having no plan for the company. We urge you to test their theories and their track record against the proven and solid performance offered by your board,” Ward wrote.
The hedge funds said in May that although they believe CSX has taken some recent steps in the right direction, they want the Jacksonville, Fla., company to further expand its repurchase program and establish more ambitious financial goals. In December, they jointly nominated the minority board slate.
The board vote will take place at CSX’s annual meeting, set for June 25 in New Orleans.