MSA profit inches ahead

MSA's first-quarter profits increased 2 percent despite a 1 percent drop in sales, as stronger earnings overseas offset declining U.S. sales to fire departments and military markets. Net income totaled $16.1 million, or 44 cents per diluted share, on sales of $225.9 million, vs. year-ago earnings of $15.7 million, or 42 cents per diluted share, on sales of $228.4 million. Sales of breathing equipment to fire departments were down $16.1 million from year-ago levels because of delays in awarding federal grants local fire departments use to make purchases. Results for the most recent quarter benefited from a lower tax rate, while year-ago results reflect pretax charges of $6 million for restructuring and other items.

Eagle feels the April chill

Marshall retailer American Eagle Outfitters had an even chillier April than some analysts predicted with the chain reporting a 10 percent drop in sales at established stores. The company said it was hurt by the shift in the Easter holiday and generally disappointing traffic trends but sales trends improved toward the end of the month. Total sales for the four weeks ended May 5 were $171.9 million, a dip of 4 percent from $179.2 million for the comparable period last year. The company reaffirmed its first-quarter earnings guidance of 34 to 35 cents per share.

TreeHouse hurt by costs

TreeHouse Foods Inc. shares fell 9 percent yesterday after the Westchester, Ill., company reported first-quarter earnings below analysts' expectations. The company that makes soup and baby food in the former Heinz plant on the North Side said net income was flat at 24 cents per share, or $7.4 million, for the three months ended March 31, mainly because of surging prices for energy, corn syrup and other items. Net sales rose almost 50 percent to $259 million, primarily because of the company's acquisition of soup and baby food lines from Del Monte Foods Co. last year. Shares closed at $29.11, off $2.85.

Lanxess earnings jump

German-based chemicals company Lanxess AG said first-quarter net income jumped by 11 percent to $123.1 million from $110.9 million a year ago. Sales slipped 7 percent to $2.3 billion from $2.4 billion in last year's first-quarter. Lanxess, which has its U.S. headquarters in Findlay and employs about 400 in the Pittsburgh region, said U.S. sales increased by about 5 percent in the first quarter, largely due to strong sales for its butyl rubber business.

Three for the drug deal

Another bidder reportedly has emerged for Merck KGaA's generic drugs arm, joining Canonsburg-based Mylan Laboratories and Teva Pharmaceutical Industries of Israel, which also are thought to be in the final running to buy the German-based unit. The new joint bid was made by Greater Pacific Capital LLP, a U.K-based private equity firm, and Torrent Pharmaceuticals, the Times of London reported, citing unidentified sources. The three bidders have been given two weeks to submit final proposals, the newspaper said.

Yahoo ending auction site

Yahoo Inc. will close its online auction service for North America next month, signaling the Internet powerhouse's intention to focus on more profitable endeavors as it tries to snap out of a financial malaise. The company's auctions in the United States and Canada will end June 16, although some tools will remain accessible until Oct. 29. The closure won't affect Yahoo's auction services in Hong Kong, Singapore and Taiwan. Yahoo is retreating from North America's auction market nearly nine years after launching the service.

Motorola settles complaints

Motorola Inc. has agreed to pay $25 million to settle Securities and Exchange Commission complaints that it "knew, or should have known" Adelphia Communications Corp. misused a marketing agreement between the two companies to inflate its earnings. Under the arrangement, Motorola provided digital cable television set-top boxes used by Adelphia. But Aldephia, according to the SEC, overpaid for the devices, only to receive refunds -- which Adelphia called "marketing support payments" -- from Motorola that it counted as revenue. Motorola did not admit or deny the SEC's findings.

Also in business ...

Francis J. Kramer, president of II-VI Inc., will succeed Carl J. Johnson as chief executive officer of the Saxonburg-based electro-optical equipment maker on July 1. Mr. Kramer will retain his title as president and Mr. Johnson will remain chairman ... MedExpress Urgent Care on Tuesday will open a clinic, its fifth in the region, in the Eastgate Plaza on Route 30 in Hempfield... Whole Foods Markets Inc. said first-quarter profit fell 11.2 percent as the natural and organic foods giant continued to show slower growth in sales. Earnings per shares were 32 cents, 4 cents below analysts' estimates ... PNC Financial Services Group said it would acquire ARCS Commercial Mortgage, a Calabasas Hills, Calif.-based firm that originated more than $2.1 billion in loans in 2006 and services about $13 billion in loans. Terms weren't disclosed.