By Tess Stynes
Union Pacific Corp. (UNP) said its board approved a 15% increase
in the railroad company's quarterly dividend as well as a 2014
capital spending budget of roughly $3.9 billion.
The quarterly dividend will rise to 91 cents a share, an
increase of 12 cents a share.
The company said the 2014 capital spending plan represents an
increase of about $300 million over 2013 levels and includes
increased spending for rail anticrash technology, known as Positive
Train Control, or PTC.
Capital spending for Positive Train Control is expected to
increase 7.1% to $450 million. The anticrash technology is designed
to automatically stop a train even before it runs a red signal or
gets into other dangerous situations.
"This dividend increase demonstrates our confidence in Union
Pacific's continued ability to generate growing cash returns on our
diverse franchise opportunities," said Chief Financial Officer Rob
Knight.
"The increased capital spending plan for 2014 also highlights
our expectation of future volume growth across a wide range of
markets in 2014 and beyond," he added.
Union Pacific last month reported that its fourth-quarter
earnings rose 13% on improved shipments and pricing gains, despite
a continued slump in coal volume.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires