GATX Declares Dividend
Shareholders Authorize Increase in Shares
Two-for-One Stock Split To Be Effective June 1
CHICAGO, April 24--At GATX's annual meeting today, the shareholders approved an amendment to GATX's certificate of incorporation which increases authorized shares of common stock from 60 million to 120 million shares. Shareholder approval of the amendment was a prerequisite for a two-for-one stock split previously authorized by the board of directors. The stock split will be effected in the form of a stock dividend for shareholders of record on May 11, 1998, which will be distributed to shareholders on June 1, 1998.
The board of directors of GATX Corporation today declared a quarterly dividend of $0.25 per common share, payable June 30, 1998, to shareholders of record June 15, 1998. The $0.25 dividend reflects the effect of the two-for-one split on the common dividend; prior to the two-for-one split, each common share received a dividend of $0.50 per quarter; on a comparable basis, there is no change in the dollar amount paid to each shareholder.
Ronald H. Zech, chairman of GATX, stated, "This stock split highlights our continued confidence in the future strength and success of our company. We believe the two-for-one stock split will place GATX's common stock into a more desirable trading range for a wider group of investors and will broaden our shareholder base by improving the attractiveness and liquidity of our shares for each of our stockholders."
The board also declared a quarterly dividend of $0.625 per share on the $2.50 preferred stock, payable June 1, 1998, to shareholders of record May 15, 1998. This preferred dividend is unchanged from the previous quarter.