The Board of Directors of Union Pacific Corporation (NYSE: UNP) approved the Company's 2016 capital plan of approximately $3.75 billion, down about $550 million versus 2015. The plan includes $375 million to further implement Positive Train Control.
"Given the decline in volume, we have taken a hard look at our capital plan and continue to invest for safety, productivity and where returns meet our threshold of reinvestability," said Rob Knight, Union Pacific chief financial officer. "These investments will create value for our customers and strong returns for our shareholders in the years ahead."
Five of six transportation markets that Union Pacific serves saw declining carloads last year. The only increase in carloads was the automotive sector which was not enough to offset losses in other areas. Overall there was a 9% decline in carloads in 2015. Fourth-quarter coal revenue dropped 31% while crude oil shipments plunged 42% year over year in the fourth quarter.
The Board also declared a quarterly dividend of 55 cents per share on the company’s common stock, payable March 31, 2016, to shareholders of record February 29, 2016.
Union Pacific has paid dividends on its common stock for 117 consecutive years.