U.S. Steel CFO says Carnegie Way is in ‘third inning'

U.S. Steel Corp.'s management believes the company is in the “third inning” of its Carnegie Way initiative to cut costs and increase performance, according to analyst Anthony B. Rizzuto Jr. of Cowen & Co.

Rizzuto told investors in a research note that he met on Wednesday with U.S. Steel chief financial officer Dave Burritt. “We came away with an increased level of confidence in the transformational changes taking place at U.S. Steel,” Rizzuto said.

Through June 30, company executives have said the initiative saved $435 million since it began in April 2013.

“While they have not set a target, a crude extrapolation from management's baseball analogy would imply Carnegie Way savings of about $1.3 billion, which we believe could be quickly approached just by gathering further low-hanging fruit.” Rizzuto said.

U.S. Steel is Rizzuto's top steel company selection, and he increased his target price for shares to $60 from $45.

Company spokeswoman Courtney Boone declined to comment on Rizzuto's note and said the company's investor relations team routinely meets with members of the investment community.

Flight attendants reach tentative deal with AA

A flight attendants' union said it has a tentative contract covering crews at American Airlines and US Airways.

The union on Friday said negotiators reached an agreement with American Airlines Group Inc. with industry-leading terms. Those terms were not disclosed.

The company is calling it a step toward combining the two airlines into one, which will keep the American name.

The Association of Professional Flight Attendants said leaders will meet next week and decide whether to send the agreement to members for a ratification vote.

Pabst Brewing to be sold to Russian company

The maker of Pabst Blue Ribbon beer is being sold to Russian company Oasis Beverages for an undisclosed sum.

Oasis is buying Pabst with TSG, an investment firm known for its work with consumer products companies. TSG Consumer Partners will take a minority stake in Pabst.

In addition to its namesake beer, Pabst Brewing Co. makes Colt 45, Old Milwaukee and Schlitz, as well as regional brews such as Lone Star, Rainier and Old Style. Pabst Brewing traces its roots to 1844 in Milwaukee.

Pabst Blue Ribbon in particular has grown in popularity among people in their 20s and 30s in part for its blue-collar and retro appeal, as well as for its cheap price.

Pabst accounts for less than 3 percent of the beer market, said Eric Shepard, executive editor of Beer Marketer's Insights, an industry tracker.

Exxon to wind down Russian drilling project

Exxon Mobil on Friday said it will wind down a drilling project in Russia in compliance with U.S. sanctions, but said it received a license to keep working beyond the sanctions' deadline to complete the work.

Sanctions against Russia over its involvement in Ukraine require the removal of American workers on projects in the Russian Arctic and other select locations by Sept. 26.

Exxon is drilling an exploratory well in the Kara Sea in the Russian Arctic, and had planned to stop drilling in October to remove equipment and personnel before winter set in. The project is part of a broad collaboration between Exxon and the Kremlin-controlled Rosneft, Russia's largest oil company. The two aim to explore for oil and gas in technically challenging formations in Russia.

Marc USA expands to Boston with acquisition

Marc USA, one of the region's largest advertising companies, on Friday said it acquired Results:Digital in Boston to expand its digital media services. Terms of the deal were not disclosed.

The transaction adds Boston to Marc offices in Chicago, Miami and Pittsburgh, with total employment rising to 270, and billings to $370 million annually. South Side-based Marc said Results: Digital has annual billings of $35 million. It will be named Marc USA Results:Digital.

The acquisition adds 30 digital media employees to Marc's practice, Chairman Tony Bucci said. “We could never hire this many people this fast. And we're getting people we know and with whom we have worked closely,” he said.

Marc began working with Results:Digital in 2012 on work for clients Payless ShoeSource, Rite Aid and True Value. Jason Russo, founder and president of Results:Digital, is now president of the Marc office in Boston

Gauge of nation's economy edges up 0.2% in August

A gauge designed to predict the economy's health rose in August but at a much slower pace than in July.

The Conference Board on Friday said that its index of leading indicators rose 0.2 percent in August, the seventh straight increase. But that was much slower than the revised 1.1 percent gain in July.

“The leading indicators point to an economy that is gaining traction, but most likely won't repeat its stellar second-quarter performance in the second half,” Conference Board economist Ken Goldstein said.

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