- Bloomberg News
Bank closes deal with PNC
PNC Financial Services Group Inc., the Pittsburgh bank, said in a securities filing it had completed its $3.47 billion cash purchase of RBC Bank USA of Raleigh, N.C., the U.S. retail banking operation of Royal Bank of Canada. The acquisition adds approximately $19 billion in deposits and $16 billion in loans to PNC. When it announced the deal in June, PNC said RBC's 424 branches in North Carolina, Florida, Alabama, Georgia, Virginia, and South Carolina would bring PNC's network to 2,870 branches, making it fifth among U.S. banks. In the Philadelphia area, PNC is fourth-largest by deposits. - Reid Kanaley
NutriSystem posts loss
NutriSystem Inc.'s shares plunged in after-hours trading Monday after the weight-loss company posted a bigger-than-expected loss and disappointing guidance. The Fort Washington company reported a loss of $1.2 million, or 4 cents per share, for the period that ended Dec. 31. That's compared with income of $7.1 million, or 25 cents per share, in the same quarter the previous year. Revenue fell 24 percent, to $66.9 million. Analysts polled by FactSet anticipated a loss of 2 cents per share for the period on revenue of $65.3 million. NutriSystem said it expected to run more promotions to draw clients but that would cut into its profitability in the near term. - AP
Bureau takes school loan complaints
The Consumer Finance Protection Bureau has begun to take complaints about student loans, it said Monday. The bureau will assist all borrowers having problems taking out or repaying a private loan or managing one in default and referred to a debt collector. Complaints can be submitted through 1-855-411-2372; at www.consumerfinance.gov; faxed to 1-855-237-2392, or mailed to the bureau at Box 4503, Iowa City, Iowa 52244.
- Alan J. Heavens
SciCast gets arsenal contract
SciCast International Inc., of Bechtelsville, Pa., received a contract worth up to $45.9 million over five years from the Picatinny Arsenal, the Joint Center of Excellence for Armaments and Munitions, which provides products and services to all branches of the U.S. military. Picatinny Arsenal is in Dover, N.J. As prime contractor, SciCast International, which employs 45, will provide technical and engineering services in conjunction with partners such as Serco Inc. in Reston, Va. - Harold Brubaker
Elsewhere
Gas pump prices continue rise
The average price at the gas pump pushed toward $3.80 a gallon Monday as oil prices remained stubbornly high because of tensions tied to Iran's nuclear program. The nationwide average for gasoline rose less than a penny overnight, to $3.77 a gallon, the 27th consecutive day of gains, according to AAA, Wright Express, and the Oil Price Information Service. The price has risen 32 cents, or 9.3 percent, since Feb. 1. OPIS chief oil analyst Tom Kloza said that the average price could reach $4.25 a gallon by late March or April but that the pace of the increase should slow. - AP
Factory orders sharply reduced
U.S. factory orders fell in January by the most in 15 months after businesses sharply reduced requests for machinery and equipment. The decrease was largely expected after a tax cut expired at the end of last year. Even with the decline, orders have gradually been climbing back to near pre-recession levels. The Commerce Department said Monday factory orders fell 1 percent in January. That lowered overall demand for factory goods to $462.6 billion, or 37.7 percent above the recession low hit in March 2009. - AP
AIG sells $6 billon shares
American International Group Inc. is selling part of its stake in AIA Group Ltd. to raise $6 billion as it continues to repay the $182 billion government bailout loan that prevented the company's collapse during the 2008 financial crisis. The New York company plans to sell a "significant proportion" of its 33 percent stake in AIA, it said Monday. AIG said shares would be sold to institutional investors and proceeds used to pay off money owed to the U.S. Treasury. AIG has been steadily paying back its debt and owed U.S. taxpayers $50 billion as of Dec. 31. The government still owns about 76 percent of AIG. - AP
Buffett news briefing eliminated
Berkshire Hathaway Inc. is eliminating the news conference Warren Buffett and Charlie Munger traditionally held as part of the festivities around the company's annual shareholder meeting. Spokeswoman Carrie Kizer said Monday the event would be dropped because of time constraints. In previous years, the news conference was held on the Sunday of the shareholder weekend, one day after Buffett and Munger spent nearly six hours answering questions in front of 30,000 people. Buffett will take questions from a panel of three journalists and three financial analysts at the meeting this year, to be held May 5. - Bloomberg News
Apple: Billions in downloaded apps
More than 25 billion apps have been downloaded from Apple Inc.'s app store. A news released from Apple on Monday said the downloads came from more than 315 million iPhones, iPads, and iPod touches. The app store has more than 550,000 apps, some of which are free.
- AP
