(Union Pacific issued the following press release on February 3, 2011.)
OMAHA, Neb. — Union Pacific Corporation (NYSE: UNP) announced that its Board of Directors today authorized the repurchase of up to 40 million additional common shares by March 31, 2014. This new program is effective April 1, 2011, replacing the current authorization that will expire March 31, 2011. In addition, the Board voted to maintain the quarterly dividend of 38 cents per share on the Company’s common stock, payable April 1, 2011, to stockholders of record as of February 28, 2011.
“This new share repurchase authorization demonstrates Union Pacific’s continued commitment to driving higher shareholder returns,” said Jim Young, Union Pacific chairman and chief executive officer. “In 2010, our record performance enabled us to increase the dividend 41 percent and return nearly $1.25 billion to shareholders through our repurchase program. We believe 2011 will be another record-setting year for our Company as we safely and efficiently handle growing business volumes for our customers. We expect to generate strong cash from operations sufficient to support our strategic growth capital investments, maintain a strong balance sheet and reward shareholders with growing financial returns.”
Since announcing its initial program in January 2007, the Company has repurchased approximately 12 percent of its outstanding shares at a total cost of more than $4.3 billion, or an average purchase price of $66.48 per share. The new authorization allows for the repurchase of another 8 percent of the outstanding shares. The timing and volume of share repurchases will be executed at the discretion of management on an opportunistic basis. 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 112 consecutive years.