PNC to take charges

PNC Financial Services Group expects to record third quarter charges related to the declining value of its stakes in federally sponsored lenders, the reduced value of commercial mortgages held for sale, and the expense of contributions it will make to fund incentive programs of BlackRock Inc. PNC owns a 34 percent stake in BlackRock. The BlackRock and commercial mortgage charges each are expected to reduce noninterest income by approximately $120 million. PNC did not detail the amount of the charge related to its investment in Fannie Mae and Freddie Mac.

FedEx boosts guidance due to lower costs

Dropping fuel costs and tight costs controls persuaded shipping giant FedEx Corp. to raise its first-quarter earnings guidance significantly. The Memphis, Tenn., shipping giant, which has a ground division based in Moon, now expects earnings of $1.23 per share, up from earlier guidance for 80 cents to $1 per share. The company is sticking with its full-year outlook, saying slowing U.S. trends have begun to extend to other areas of the global economy.

Apple unveils new iPod lineup

Apple Inc. Chief Executive Officer Steve Jobs unveiled a revamped line of iPods yesterday and announced a truce with NBC Universal that means the network will begin selling programs again on iTunes. The iPod upgrades include two Nano models that Mr. Jobs said are the thinnest iPods ever, at less than a quarter-inch thick. A $149 version comes with enough memory for 2,000 songs; a version with twice as much space will sell for $199. Apple also has three new versions of the iPod Touch, which resembles the iPhone but doesn't make calls.

MSA wins 2 more Air Force contracts

O'Hara-based MSA said yesterday it won two contracts to supply the Air Force with a newly developed self-contained breathing system. The contracts are valued at a combined $24.6 million, and are in addition to an initial $36 million Air Force contract for similar devices announced in 2006. The breathing devices are used by firefighters and by Air Force personnel for protection from chemical, biological, radiological and nuclear contaminants. The devices will be produced at the company's Murrysville plant.

McDonald's gets fat on foreigners' tastes

Overseas consumers spent more at McDonald's Corp. in August, leading the restaurant chain to surprise investors yesterday by posting a big rise in global same-store sales. The chain said its worldwide same-store sales, or sales at locations open at least a year, jumped 8.5 percent in the month. The increase follows a rise in global same-store sales of 8 percent in July and compares with a boost of 8.1 percent in August last year. In the United States, the chain said, sales rose 4.5 percent, driven by the company's breakfast menu.

Also in business ...

The average price of a gallon of regular unleaded gasoline at area pumps fell 3.6 cents this week to $3.59, AAA East Central reported ... Shares of AK Steel fell 16 percent to $33.72 after Harbinger Capital Partners, the company's largest investor, sold 3.08 million shares, or about 19 percent, of its stake in AK Steel ... Atlas America Inc. said it would repurchase up to $50 million of its common stock, or about 1.54 million shares. Atlas has about 40 million shares outstanding.