Business briefs
Pa. approves new infrastructure fee for Duquesne Light clients
The Pennsylvania Public Utility Commission voted 5-0 to approve a new charge on Duquesne Light Co. customers that allows the Pittsburgh electric utility to collect $212 million for infrastructure improvements over the next six years. The utility submitted a long-term plan that accelerates projects to repair aging infrastructure that aim to improve reliability and service to its 588,000 customers spread across Allegheny and Beaver counties. Since 2012, the state commission has allowed utilities to collect more revenue through a surcharge called a distribution system improvement charge.
S&T Bank saw earnings rise 13% in first quarter
S&T Bank based in Indiana, Pa., said first-quarter earnings rose 13 percent to $18.2 million, or 52 cents per share, up from $16.1 million, or 46 cents, in the same period last year. Net interest income, essentially profit on loans, increased 9 percent to $53.9 million, while fee income fell 18 percent to $13 million.
BNY Mellon’s first quarter profits up 9 percent
Bank of New York Mellon reported profits of $880 million in the first quarter, up 9 percent from $804 million a year earlier on higher revenue. Per-share earnings climbed 14 percent to 83 cents from 73 cents. Excluding non-recurring gains, the New York-based trust and custody giant earned 80 cents per share, matching Wall Street estimates. “We again delivered doubledigit earnings per share growth … reflecting the strength of our dynamic, well-diversified business model,” chairman and CEO Gerald Hassell said. Revenue was $3.84 billion for the three months ended March 31, up 3 percent from $3.73 billion in 2016. Both fee and net interest revenue rose.
Tesla recalls some Model S, X cars for parking brake problem
Because of a parking brake that might stick and render a car immobile, Tesla Inc. has issued a voluntary recall for certain Model S and Model X luxury electric cars. In an email to owners Thursday, first revealed by TechCrunch, Tesla said that no injuries related to the defect have been reported. What happens is the parking brake can stick and the car won’t move. Tesla said it may not have parts needed for a fix until October. The issue affects an estimated 2 percent of 53,000 cars built from February to October 2016, the company said, although all those cars are being recalled.
Investor calls for Buffalo Wild Wings CEO to leave
Marcato Capital Management is pushing Buffalo Wild Wings to replace its chief executive officer, the activist investor’s latest move in its proxy fight against the beerand-wings eatery. Mick McGuire’s San Franciscobased fund officially filed Thursday to nominate four dissident directors for election at Buffalo Wild Wings’ upcoming annual meeting, after it said the company’s board rejected an alternative plan to remove CEO Sally Smith and seek a successor. Shares of Minneapolisbased Buffalo Wild Wings rose 3.8 percent to $160.30 in New York at 11:20 a.m., valuing the company at about $2.6 billion.
Agency accuses Ocwen of mishandling loans
The Consumer Financial Protection Bureau sued Ocwen Financial Corp., one of the nation’s largest mortgage servicers, on Thursday, alleging the company engaged in “significant and systemic misconduct” that caused borrowers to lose their homes. In addition to the lawsuit filed in U.S. District Court in Florida, more than 20 state regulators took action against the company, limiting its operations in their states. The federal consumer agency alleged that the West Palm Beach, Fla., company conducted an error-plagued operation that failed to credit borrower payments, sent inaccurate statements and didn’t make insurance payments on time, leading to a lapse of coverage. Ocwen also was accused of illegally starting foreclosure on at least 1,000 consumers. In a statement, the company called the consumer agency’s allegations “inaccurate and unfounded.”