Cie Automotive SA (CIE), a Spanish car- parts maker whose clients include Volkswagen AG and Renault SA (RNO), will resume dividends within two months and may repurchase shares as earnings growth is boosted by Russian sales.

Cie aims to pay a third of its earnings in dividends and may increase the value of its stock through methods such as buybacks, Chairman Anton Pradera said in an interview yesterday. The company hasn't paid a dividend since 2008, according to Bloomberg data.

"It will be December or January but there will be a dividend," Pradera said via phone from the company's Bilbao headquarters, adding that the board has yet to decide. "Our financial structure will be very solvent by the end of the year and there will be room for anything," including share buybacks.

Cie, which has more than 60 manufacturing plants in Europe, the Americas and Asia, is "on track" to meet earnings-growth targets, Pradera said. Those include doubling last year's net income in three years and doubling 2009 earnings before interest, taxes, depreciation and amortization by 2012. Sales will reach 2 billion euros in 2013, the company said in March.

Cie's shares climbed as much as 1.5 percent, reversing earlier losses, and traded up 0.9 percent at 5.69 euros as of 10:42 a.m. in Madrid, giving the company a market value of 649 million euros ($862 million). The benchmark IBEX 35 Index dropped 1.1 percent.

Russia Sales

Nine-month net income climbed 61 percent to 50.3 million euros as sales advanced 19 percent to 1.4 billion euros, even as car registrations in the European Union slid 1.2 percent from January to October compared with a year earlier to 11.126 million, according to the European Automobile Manufacturers Association.

"We expect a slowdown in sales growth during the fourth quarter and the first three months of next year, which will be compensated by a strong sales performance in Russia," Pradera said in the interview.

The company aims to cut debt to less than two times Ebitda by year end and is "comfortable" with its financing needs after signing a 350 million-euro syndicated loan with 17 lenders in July, Pradera said. This financial position will give the company room to study ways of boosting the stock, including share buybacks. Cie held 2.85 percent in treasury stock as of Oct. 3, according to a regulatory filing.

Cie was founded in 1996 and its clients also include General Motors Co. (GM), Ford Motor Co (F) and other carmakers and auto- parts makers.

To contact the reporter on this story: Manuel Baigorri in Madrid at mbaigorri@bloomberg.net

To contact the editor responsible for this story: Angela Cullen at acullen8@bloomberg.net