Lear, which makes seats and electrical parts, climbed 6.4 percent to $57.38 at the close in New York, its largest daily gain since February 2012. Dana, a maker of axles for cars, trucks and construction equipment, slid 2.7 percent to $16.84 after falling 6.4 percent, the most intraday since July.
Lear, based in Southfield, Michigan, reported first-quarter net income of $108.5 million compared with $134.1 million a year earlier. Excluding what the company considers one-time items, per-share profit was $1.30, exceeding the $1.10 average of 17 analysts’ estimates.
Lear said it reached an agreement with a Citigroup Inc. unit to repurchase $800 million of Lear stock. The company said it will retire about 12 million shares within the next week.
Lear previously reached an agreement with dissident shareholders Marcato Capital Management LLC and Oskie Capital Management LLC that includes expanding a stock buyback. Marcato and Oskie have withdrawn their slate of nominees for election to Lear’s board at the 2013 annual meeting and agreed to vote their shares in support of the company’s nominees.
Dana, based in Maumee, Ohio, said first-quarter net income totaled $42 million, compared with $70 million a year earlier. Excluding what the company considers one-time items, profit was 28 cents a share, down from 44 cents a year earlier. That trailed the 42-cent average of 13 analysts’ estimates in a Bloomberg survey. Sales fell 15 percent to $1.68 billion, compared with $1.75 billion, the average of 10 estimates.
Lower sales in the North American truck market and for off- highway vehicles in Europe and Asia hurt sales in the quarter, Dana said in a statement.
“Demand levels in a number of our key markets provided a bit of a headwind for us in the first quarter, but overall results were in line with our expectations,” Chief Executive Officer Roger Wood said in the statement.
The company reaffirmed its 2013 forecast for adjusted profit of $1.88 to $1.95 a share on sales of $7.1 billion. Thirteen analysts in a Bloomberg survey estimated profit of $1.92 a share on sales of $7.2 billion, the average of 12 analysts’ estimates.
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