Correction: An earlier version of this report stated that Dana emerged from bankruptcy in 2012. It actually emerged from bankruptcy in 2008.
Auto part manufacturer Dana Holding (DAN) agreed to expand its preexisting buyback on Friday by roughly $900 million, underscoring its building confidence as the auto market rebounds.
The increase comes on top of an earlier repurchase program of which close to $100 million was returned to shareholders. Dana said it expects to have “sufficient liquidity” to support the initiative.
"This expanded program reflects confidence in the long-term prospects of our business," Dana CEO Roger Wood said in a statement. "We continue to review our capital structure with the goal of best utilizing our strong balance sheet to maximize shareholder value."
The Maumee, Ohio-based maker of axles, sealing and thermal technologies that improve passenger-car efficiency also agreed to refinance its current U.S. revolving credit facility on Friday, establishing a new five-year, $500 million, revolving facility that it said will both lower costs and increase financial flexibility.
Shares of Dana climbed more than 3.2% to $18.80 in recent trade. They have surged by nearly 41% over the last 12 months as demand for new technologies and fuel efficiency rebound in the auto sector.