Business

Gas prices roared above $3.75 a gallon Wednesday, while oil prices fell after an Energy Department report gave a mixed picture of the nation's petroleum reserves. At the pump, the average national price of a gallon of regular gas rose 2.6 cents overnight to a record $3.758 a gallon, according to AAA and the Oil Price Information Service. Gas prices are 67 cents higher than a year ago and are expected to continue rising at least until the Memorial Day weekend. The Energy Department recently forecast that prices will peak next month at a monthly average of $3.73 a gallon. But that means prices may rise well above that level at times; many analysts expect prices to reach $4 a gallon on a national basis in coming weeks.

End likely for drug

An anti-bleeding drug probably will stay off the market, experts say, after a rigorous study found patients getting the medication during heart surgery were much more likely to die than patients given other drugs. Bayer AG, the maker of the drug Trasylol, said it is still deciding what to do and is awaiting details from the Canadian study. Bayer faces dozens of lawsuits claiming Trasylol led to excess deaths and that the company hid evidence of harm. But experts in Canada and the United States say the study appears to seal the drug's fate, given that several prior studies linked Trasylol to an elevated risk of death after surgery -- and studies that didn't find a higher risk had many weaknesses.

Carrier to cease service

US Airways Express partner Air Midwest said Wednesday it will cease flying to its 27 cities by the end of June. Those destinations include three daily flights between Pittsburgh and DuBois and two each day to Franklin, both of which the express carrier will stop serving on May 23. Air Midwest, a subsidiary of Mesa Air Group, folded operations due to "record-high fuel prices, insufficient demand and a difficult operating environment," said the Wichita, Kan.-based airline.

Omnova pact OK'd

Omnova Solutions Inc. said Wednesday that the United Steelworkers Local 22L at its Jeannette plant ratified a three-year labor agreement. Some of the provisions were implemented as of Monday, while the full contract will take effect on Sept. 2, the expiration date of the current pact. The union represents about 116 of the plant's 150 employees, Omnova said. Workers were given an early ratification bonus for approving the contract, which provided annual wage increases, spokeswoman Sandi Noah said yesterday. She declined to provide details of the pact. A USW spokesperson could not be reached for comment.

Stock sale approved

Shareholders in Royal Bank of Scotland Group PLC, the parent of Citizens Bank of Pennsylvania, gave approval on Wednesday for the biggest stock rights issue in British corporate history -- almost $24 billion. RBS said 95 percentvoted in favor of authorizing the bank to issue stock to bolster its finances after hits from its exposure to the U.S. subprime mortgage crisis and last year's costly buyout of Dutch bank ABN Amro.

IBT Bancorp merger

Shareholders of IBT Bancorp Inc. approved the Irwin bank company's merger into S&T Bancorp Inc., Indiana, Pa. The previously announced merger will add the nine branches of Irwin Bank & Trust in Westmoreland and Allegheny counties to the 46 branches of S&T Bank in those and eight other Western Pennsylvania counties in early June. IBT stockholders approved the deal at a special shareholder meeting. The deal combines the two holding companies, enlarging S&T's assets to more than $4.3 billion from $3.5 billion.

Earnings

• ArcelorMittal SA, the world's largest steelmaker, said Wednesday that profit climbed 5 percent in the first quarter to $2.37 billion as strong worldwide demand allowed it to hike prices despite higher costs. Sales in the first three months of the year rose 22 percent to $29.8 billion from $24.47 billion a year ago as shipments rose 8 percent.

• Macy's Inc. said Wednesday that it lost $59 million in the first quarter because of lower sales and the cost of consolidating business units, which should save money starting next year. Losses totaled 14 cents a share in the three months ended March 31, compared with a profit of $36 million, or 8 cents a share, in the same quarter a year ago, Macy's said. Revenue was $5.75 billion, down from $5.92 billion a year ago.

Other business news

• Comcast customers now can start watching an On Demand program in one room, then continue it on any other TV in the house that has a cable box. The cable provider said Wednesday its free AnyRoom service now is available in the Pittsburgh region. Customers don't need to change service or add equipment. They can access content from different rooms through the "Saved Programs" list; the selected program will start where the viewer left off on another TV.

• Ford Motor Co. is recalling more than 655,000 Ford F-150 and Lincoln Mark LT pickup trucks to fix a hose that could affect the vehicles' braking power. The automaker is issuing the recall of 2005-2006 versions of the trucks with 5.4 liter, 3-valve engines. Ford says there have been 11 minor accidents and no injuries tied to the issue.

• Don Miller, former assistant sales director at Nemacolin Woodlands Resort in Farmington in Fayette County and a Fayette County native, was named sales director at Bedford Springs Resort in Bedford County.

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