Business Briefs

Bethlehem Steel is confronting potential buyers or merger partners with a $3 billion question: are its facilities worth taking on such a big obligation to its huge number of retirees. Analysts said Tuesday that Bethlehem's unusually large ''legacy'' costs -- pension and health care benefits to 74,000 retirees of the once-vast company -- are likely to scare off any suitor. Bethlehem Steel employed nearly 300,000 people during World War II when it was launching ships and cranking out steel for tanks, guns and planes. It once had 30,000 workers at its massive plant, now shuttered, along the Lehigh River in Bethlehem, 50 miles north of Philadelphia. The company dwindled to about 13,000 workers, with about 500 in Bethlehem, where it maintains its headquarters. But even though it has shrunk, the company still must cover health-care costs for 130,000 people, including active and retired employees and their families.

United Technologies Corp.

With the airline industry staggered by the Sept. 11 terrorist attacks, jet engine maker United Technologies Corp. plans to cut about 5,000 jobs, or about 3.2 percent of its work force. The cuts announced Tuesday include 8 percent of the jobs in its Pratt & Whitney jet engine division and 9 percent of those at aerospace supplier Hamilton Sundstrand. About half of cuts will come in UTC's home state of Connecticut. Despite reporting a 14 percent increase in third-quarter earnings, UTC Chairman George David said analysts should expect the company to reflect the economic slump. David also said problems at UTC's Carrier air conditioning and refrigeration division are being resolved. The company has struggled to integrate newly acquired businesses and deal with a decline in demand.

American Standard

Plumbing and air conditioning systems maker American Standard said Tuesday it is cutting 1,000 jobs, or about 1.7 percent of its worldwide work force, in anticipation of a continued sales slump amid the weak economy. The maker of Trane and American Standard air conditioning systems, for homes, institutions and commercial buildings, reported flat income and a slight drop in sales for the third quarter. Net income for the quarter was $90 million, up from $89 million in the third quarter of 2000. Earnings per share totaled $1.23 for both periods.

Fidelity Investments

Fidelity Investments' Magellan fund took a more defensive investment posture at Sept. 30, as health care sector stocks grew as a portion of its portfolio and the allocation to information technology stocks continued to shrink. Magellan, with $71.7 billion in assets, increased health care to 14.5 percent of its portfolio from 12.7 percent at Aug. 31, making it the fund's third-largest sector holding. Information technology shares declined to 11.1 percent of holdings from 13 percent at Aug. 31. IT shares constitute Magellan's fourth-largest sector holding.

Organization of Petroleum Exporting Countries

Iraq urged the Organization of Petroleum Exporting Countries Tuesday to cut oil production by 1 million barrels a day to restore balance in the world market and raise prices. Oil Minister Amer Mohammed Rashid told the official Iraqi News Agency that the fall in OPEC's crude oil price by $4 per barrel in a short period will harm OPEC members and other developing nations that export oil. Rashid said Iraq is watching carefully the sharp and quick decrease in oil prices since the Sept. 11 terrorist attacks on the United States.

AAA

Gasoline prices in western Pennsylvania declined for the fifth straight week and are now at their lowest level in more than two years, according to AAA West Penn/West Virginia/South Central Ohio. The AAA Fuel Gauge Survey showed the average price paid for a gallon of regular, unleaded self-serve gasoline in western Pennsylvania this week was $1.20, down from $1.30 last week.

CoGo's Co.

Pittsburgh-based CoGo's Co. has reached an agreement to purchase two convenience stores in Somerset and Blairsville, bringing the number of stores in the chain to 99 in the United States (98 in Pennsylvania and 1 in Maryland) and 22 in China. The two stores were purchased from Luther P. Miller, Inc., a gasoline, heating oil and propane provider.

America Online

America Online introduced a new radio feature Tuesday as part of an upgraded version of its service, AOL 7.0. The announcement came a day after rival Microsoft Corp. announced an upgrade of its online service, MSN. AOL, which is part of the media and entertainment conglomerate AOL Time Warner Inc., said the new radio service would carry 75 different channels of music as well as news, sports and talk programming.

Nomos Corp.

Nomos Corp. a Sewickley manufacturer of equipment for the treatment of cancer, has named John Manzetti as the company's chief executive. Manzetti previously held the title of president and chief operating officer. Manzetti joined Nomos two years ago. The company also named William Wells, who also joined Nomos in 1999, as executive vice president for sales marketing and business development.

Ketchum

Ketchum public relations in Pittsburgh laid off six employees because clients are cautious about spending in the current economic climate. Ketchum has cut 19 positions through attrition and layoffs, leaving it with 62 employees.

Allegheny Energy Inc.

Allegheny Communications Connect, the communications unit of Hagerstown, Md.-based Allegheny Energy Inc., introduced Internet and high-speed data service for business and residential customers in Westmoreland County.

Pittsburgh Index

Pittsburgh-area stocks rose on Tuesday. The Bloomberg Pittsburgh Index, a price weighted list of companies with operations in the region, gained 1.95 to 169.88.

Bico Inc.

Bico Inc., formerly known as Biocontrol Technology Inc., said quarterly revenue increased to $1.8 million from $60,000 a year ago. The company, based in Indiana, Pa., did not disclose profit or loss.

From staff reports, The Associated Press, Dow Jones, Knight Ridder, Reuters and Bloomberg News.