|Dana says it will buy back $200M in shares||| Print ||
|Written by Associated Press|
|Monday, 12 August 2013 13:47|
MAUMEE, Ohio (AP) — Dana Holding Corp. said Monday that it reached a deal with JPMorgan Chase Bank to buy back $200 million in company stock.
The auto-parts maker said that it would get about 7.3 million shares, with the number to be repurchased depending on the shares' price over time. Dana said it expected to complete the accelerated share repurchase agreement by year end.
The company said a previous repurchase program still had $225 million left, and buybacks could occur from time to time.
The Maumee-based company makes axles, driveshafts and other parts for vehicles, ranging from passenger cars to heavy-duty trucks, buses and earth-moving machinery.
Dana reported last month that second-quarter net income rose 7 percent, helped by lower production costs. However, revenue dropped 7 percent from the 2012 second quarter, and the company lowered its sales forecast for the year, blaming political and economic uncertainty in many countries where it sells parts.
For the first six months of the year, net income was down 16 percent to $119 million and revenue fell 11 percent.
In trading Monday morning, the shares rose 51 cents, or 2.3 percent, to $22.42. They began the session up 40 percent for the year.
Copyright 2013 The Associated Press.