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Yesterday, Union Pacific Railroad announced its board approved a $100 million increase to the 2010 capital spending budget to acquire additional intermodal equipment and support the Class I’s intermodal strategy. The budget now totals $2.6 billion.

“UP’s domestic intermodal business grew 8 percent last year during one of the worst recessions in decades, as our record service performance attracted new business to our railroad," said UP Chairman, President and Chief Executive Officer Jim Young in a prepared statement. “With business volumes continuing to grow, we feel very positive about the long-term fundamentals of our business, as well as UP’s strategy to make the most of these opportunities.”

UP also plans to resume share repurchases under an existing program, which authorizes purchases of up to 32.6 million shares by March 31, 2011. In addition, the board voted in favor of increasing the quarterly dividend on common shares by 22 percent to 33 cents per share. The increased dividend is payable July 1 to stockholders of record on May 28.