Eagle's sales climb 13%

American Eagle Outfitters' stock price rose ahead of the Marshall teen retailer's after-trading announcement that sales at established stores were up 13 percent in December. The chain raised its earnings guidance for the fourth quarter by a penny to a range of 64 to 65 cents per share. American Eagle's total sales for the month rose 20 percent to $522.4 million vs. $435.5 million a year ago. Its shares closed yesterday at $32.53, up $1.32.

Packaging plant closing

Wisconsin-based Menasha Packaging is closing its Pittsburgh plant by Feb. 17, permanently laying off 54 employees, according to a notice filed with the state. The facility in the Chateau section of the city housed the company's food packaging group.

Adelphia creditor plan OK'd

A federal judge in New York yesterday cleared the way for Adelphia Communications Corp. to exit bankruptcy proceedings after 41/2 years, saying he would confirm the company's Chapter 11 plan. Adelphia, one of the country's biggest cable companies, crashed into bankruptcy proceedings in June 2002 in the wake of an accounting scandal involving its founder, John Rigas, and members of the Rigas family. In July, Adelphia sold substantially all its cable operations to Comcast Corp. and Time Warner Inc. for $17.6 billion in cash and shares in Time Warner's cable unit.

Kennametal's cutting tool deal

Kennametal Inc. said yesterday it was buying Federal Signal Corp.'s cutting tool business for about $67 million. The business includes Manchester Tool Co., Clapp Dico Corp. and On Time Machine Inc. The three units have combined annual sales of about $40 million. The deal is expected to close by early February.

Rite-Aid investors targeted

A union-affiliated group that unsuccessfully sought to delay a shareholder vote on Rite Aid Corp.'s purchase of Eckerd and Brooks stores is asking stockholders to oppose the $2.55 billion deal later this month. The CtW Investment Group made its request in a letter to investors dated Dec. 29. Camp Hill-based Rite Aid has scheduled a Jan. 18 stockholders meeting to vote on the cash-and-stock purchase of the Eckerd and Brooks operations of Jean Coutu Group Inc. The CtW Investment Group is a pension advisory arm of Change to Win, a federation of seven unions.

Also in business

James V. O'Donnell, chief executive officer of American Eagle Outfitters, can expect raises for the next few years, according to a regulatory filing disclosing a new employment agreement. Mr. O'Donnell, who will continue to serve as CEO through 2010, will see his base salary rise from $1 million now to $1.6 million by fiscal 2009 ... Robert P. Kelly, chairman and chief executive officer of Mellon Financial Corp., ranks No. 6 in US Banker's ranking of the nation's bank CEOs and Richard Johnson, chief financial officer of PNC Financial Services Group, ranks No. 2 in the magazine's ranking of bank CFOs ... Carnegie Mellon University's Tepper School of Business announced the creation of the PNC Professorship in Computational Finance. The PNC Foundation has given $1 million toward the professorship, and PNC Financial Services Group executives contributed $250,000 ... Elizabeth Chamberlin, a lawyer and certified mine foreman who worked for Consol Energy since 1993, has joined Massey Energy as its new safety chief ... Mylan Laboratories said the Food and Drug Administration approved its generic version of Levothroid to treat hypothyroidism. The drug is made by Lloyd Pharmaceuticals for Forest Laboratories Inc. ... Procter & Gamble Co. increased Folgers ground coffee prices by 4 percent and prices on Folgers Gourmet Selections by 5 percent.