(Reuters) -- Ohio auto supplier Dana Holding Corp. said it expanded its share repurchase program to up to $1 billion from $250 million.
Dana has been hurt by falling demand for its vehicle parts in North America and Europe over the past few months. It reported a 45 percent drop in first-quarter profit in April but said it expected to capitalize on increased volumes through 2013.
U.S. auto sales rose more than expected in May, boosted by a recovery in the housing market and relatively stable gas prices. Dana's business is led by drivetrain technologies, sealing systems, thermal-management products and off-highway transmissions.
The company said today it had already repurchased shares worth $100 million.
Dana said it plans to buy back shares either in the open market or through privately negotiated transactions over the next two years. The company had cash and cash equivalents of $981 million and marketable securities of $63 million as of March 31.
The company's stock has gained 5 percent since it reported first-quarter results. It closed at $18.21 on the New York Stock Exchange on Thursday.
Dana, based near Toledo, Ohio, ranks No. 26 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $7.22 billion in 2012.
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