Allegheny boosts dividend
Allegheny Technologies yesterday announced a 67 percent increase in its quarterly dividend and said it made a voluntary $100 million contribution to its retirement plan for U.S. workers. The new dividend of 10 cents per share is payable Dec. 27 to shareholders of record Dec. 19. Chairman, President and Chief Executive Officer L. Patrick Hassey said the company is confident it will generate strong cash flow over the next several years to support the higher dividend rate.

Kennametal reveals salaries
New Kennametal President and Chief Executive Officer Carlos M. Cardoso will be paid an annual salary of $700,000, the Latrobe toolmaker disclosed yesterday. Mr. Cardoso, who will be promoted from chief operating officer Jan. 1, also will be eligible for a $1.3 million incentive award in July. Current President and CEO Markos I. Tambakeras will remain chairman with an annual salary of $900,000 until the end of next year, when he will retire. Mr. Tambakeras' compensation for the fiscal year ended June 30 totaled $2.7 million, while Mr. Cardoso received $1.6 million.

Calgon to press lawsuit
Calgon Carbon Corp. said a federal appeals court in Canada set aside a lower court ruling in June that had invalidated Calgon's patent for the use of ultraviolet light to prevent infection from drinking water. As a result of the latest court decision, Calgon said, it would press its claim that the city of North Bay, Ontario, infringed its patent and that Trojan Technologies Inc. induced that infringement. The trial is set for April.

Deal for Export company
Dormont Manufacturing Co., an Export-based maker of flexible stainless steel connectors for natural and liquid propane gas connectors, is being acquired by a Massachusetts company for $94.5 million. Watts Water Technologies Inc., of North Andover, is a provider of water safety and flow control products. Dormont's revenue for 2005 is expected to be about $56.5 million.

Royal Bank stays on track
Royal Bank of Scotland Group said it expects to meet analyst estimates for pretax profit in 2005 and would consider a share buyback once it builds up capital. Analysts estimate 2005 profit before tax and nonrecurring items at about $14.1 billion, the company said. A shrinking gap between short- and long-term interest rates is squeezing lending margins in the United States, where Royal Bank of Scotland owns Citizens Financial Group and generates about a quarter of its profit. Citizens Bank of Pennsylvania is a unit of Citizens Financial.

Mortgage rates inch upward
The Mortgage Bankers Association's weekly survey of mortgage activity in the U.S. showed that the average interest rate for 30-year fixed rate mortgages rose last week to 6.32 percent from 6.20 percent. The average rate for 15-year fixed mortgages increased to 5.84 percent from 5.72 percent, and the average rate for one-year adjustable-rate mortgages rose to 5.59 percent from 5.39 percent.

Also in business ...
AT&T Inc. raised its quarterly dividend to 33.25 a share from 32.20, payable Feb. 1 to shareholders of record Jan. 10 ... ESB Financial Corp. said it would post an after-tax loss of $1.6 million, or 13 cents per diluted share, as a result of a restructuring of its securities portfolio.