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Business news briefs: 4/19/05
Tuesday, April 19, 2005

Drivers to get back wages
A McKees Rocks company, Community Transportation Inc., paid $249,272 in back wages to 77 drivers after an investigation by agents of the U.S. Labor Department's Wage and Hour Division found the company was not properly paying overtime. CommTrans, which provides access services to the elderly and disabled, paid drivers their regular hourly rate regardless of how many hours they worked. Federal law requires employees to be paid the minimum of $5.15 an hour and time and one half the regular rate of pay for hours worked over 40 in a week unless the employee is exempt from overtime pay.

Richland trucking firm fined
The federal government has cited an interstate trucking company in Richland for an employee's death. The U.S. Occupational, Safety and Health Administration also fined PJAX Inc. $5,000, the maximum possible, in connection with the Feb. 21 death of Shawn Keast. Keast, 33, of West View, died when he was pinned between his tractor-trailer and a loading dock during a pre-trip inspection. OSHA cited the company because the truck's brakes were not properly set and no chocks were installed behind the wheels to keep the vehicle from rolling backward toward the loading dock. Cindy Jergan, a PJAX spokeswoman, said the company will contest the findings.

Kennametal lifts forecast
Kennametal increased its earnings outlook for its third and fourth fiscal quarters, citing strong sales growth. The Latrobe toolmaker expects to report third-quarter earnings of about 92 cents per diluted share on April 27, vs. previous guidance of 80 cents to 85 cents per share. Earnings for the fiscal fourth quarter ending June 30 will be 90 cents to 95 cents per share, the company said.

Bombardier selling unit
Bombardier Inc. is selling its inventory finance division to General Electric Co. for $1.4 billion in cash. GE also will assume $1 billion in debt and other liabilities in the deal for the Bombardier Capital unit. Bombardier said it would receive cash proceeds of $825 million from the sale.

Also in business ...
Mylan Laboratories said it received approval from the Food and Drug Administration to market the generic version of Shire Laboratories Inc.'s Agrylin, a drug used to treat thrombocytosis, a condition in which there is an elevated platelet count in the blood ... Nova Chemicals said it shut down three ethylene and polyethylene plants on Saturday in Sarnia, Ontario, because of a power supply interruption. Nova expects to resume production sometime this week but said the impact on earnings could range from $20 million to $25 million.

First published on April 19, 2005 at 12:00 am
This column contains information from local and wire dispatches.