Kansas City Southern Board of Directors Initiates Quarterly Cash Dividend on Common Stock & Declares First Quarter 2012 Divid...
April 02 2012 - 8:00AM
Business Wire
On March 30, 2012, Kansas City Southern's (KCS) (NYSE: KSU)
Board of Directors approved the initiation of a quarterly cash
dividend for holders of its common stock and declared a first
quarter 2012 dividend of $0.195 per share payable on April 27,
2012, to stockholders of record at the close of business on April
16, 2012.
The quarterly common stock cash dividend of $0.195 per share
will represent a quarterly payout of approximately $21.4 million,
or $85.6 million on an annualized basis. The annual amount of $0.78
per share equates to a yield of approximately 1.1 percent based on
KCS’ common stock price at the close of trading on March 30, 2012.
Subject to capital availability and a determination that cash
dividends continue to be in the best interest of its stockholders,
KCS intends to pay a quarterly dividend on an ongoing basis.
“KCS’ continued excellent operating and financial performance,
improved balance sheet and positive long-term outlook were the
primary catalysts behind the Board’s decision to initiate a
quarterly cash dividend to stockholders,” stated President and
Chief Executive Officer David L. Starling. “We believe that in
2012, KCS will continue on a growth trend similar to that of the
past year; namely mid-single digit volume growth, mid-single digit
pricing and low-double digit revenue growth.
“As a company with abundant future growth opportunities, as well
as sufficient cash on hand and strong cash flows, we believe KCS
can continue to be a leading growth company while returning cash to
our stockholders.”
Headquartered in Kansas City, Mo., Kansas City Southern is a
transportation holding company that has railroad investments in the
U.S., Mexico and Panama. Its primary U.S. holding is The Kansas
City Southern Railway Company, serving the central and south
central U.S. Its international holdings include Kansas City
Southern de Mexico, S.A. de C.V., serving northeastern and central
Mexico and the port cities of Lázaro Cárdenas, Tampico and
Veracruz, and a 50 percent interest in Panama Canal Railway
Company, providing ocean-to-ocean freight and passenger service
along the Panama Canal. Kansas City Southern's North American rail
holdings and strategic alliances are primary components of a NAFTA
Railway system, linking the commercial and industrial centers of
the U.S., Mexico and Canada.
This news release contains “forward-looking statements” within
the meaning of the securities laws concerning potential future
events involving KCS and its subsidiaries, which could materially
differ from the events that actually occur. The words “projects,”
“estimates,” “forecasts,” “believes,” “intends,” “expects,”
“anticipates,” and similar expressions are intended to identify
forward-looking statements. Such forward-looking statements are
based upon information currently available to management and
management’s perception thereof as of the date of this news
release. Differences that actually occur could be caused by a
number of external factors over which management has little or no
control, including: competition and consolidation within the
transportation industry; the business environment in industries
that produce and consume rail freight; revocation of the rail
concession of KCS’s subsidiary, Kansas City Southern de México,
S.A. de C.V.; the termination, or failure to renew, agreements with
customers, other railroads and third parties; interest rates;
access to capital; disruptions to the KCS’s technology
infrastructure, including its computer systems; natural events such
as severe weather, hurricanes and floods; market and regulatory
responses to climate change; credit risk of customers and
counterparties and their failure to meet their financial
obligation; legislative and regulatory developments and disputes;
rail accidents or other incidents or accidents along the KCS’s rail
network, facilities or customer facilities involving the release of
hazardous materials, including toxic inhalation hazards;
fluctuation in prices or availability of key materials, in
particular diesel fuel; changes in securities and capital markets;
loss of key personnel; labor difficulties, including strikes and
work stoppages; insufficiency of insurance to cover lost revenue,
profits or other damages; acts of terrorism or risk of terrorist
activities; war or risk of war; domestic and international economic
conditions; political and economic conditions in Mexico and the
level of trade between the United States and Mexico; the outcome of
claims and litigation involving KCS or its subsidiaries; and other
factors affecting the operation of the business. More detailed
information about these factors may be found in filings by KCS with
the Securities and Exchange Commission, including the KCS’s Annual
Report on Form 10-K for the year ended December 31, 2011 (File No.
1-4717) and subsequent Quarterly Reports on Form 10-Q.
Forward-looking statements are not, and should not be relied upon
as, a guarantee of future performance or results, nor will they
necessarily prove to be accurate indications of the times at or by
which any such performance or results will be achieved. As a
result, actual outcomes and results may differ materially from
those expressed in forward-looking statements. KCS is not obligated
to update any forward-looking statements in this news release to
reflect future events or developments.
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