Pittsburgh-Cleveland partnership bears fruit

Who said Pittsburgh and Cleveland can't work together? The biosciences partnership between the two cities marked its first year with a combined $343 million in health-care venture investment, the Pittsburgh Life Sciences Greenhouse said yesterday. In 2007, the Greenhouse paired with BioEnterprise of Cleveland in creating a "Biosciences Tech Belt" aimed at leveraging the existing resources of both regions. The tech belt worked with 45 companies last year in producing new investment, the collaborators said.

Pepsi, Starbucks team up to sell tea

PepsiCo and Starbucks, already partners in a deal to sell bottled Frappucinos, are turning their attention to bottled tea. The two companies plan to give the Tazo brand greater exposure and expand distribution. Starting in mid-October, the bottled teas will be made available nationwide through the PepsiCo bottling system.

Gasoline prices continue to drop

For the second week in a row, local gas prices have dropped at least eight cents. The average price of a gallon of regular unleaded gasoline at area stations yesterday was $3.699, vs $3.786 last week. A year ago, the price was $2.739 per gallon.

General Dynamics buying Jet Aviation

General Dynamics Corp., known for tanks, ships, submarines and other military equipment, said yesterday that it would buy Jet Aviation for about $2.25 billion in cash, part of the defense contractor's push to expand its private civilian jet business.

Earnings

• Home Depot said its second-quarter profit sank 24 percent and repeated its downbeat outlook for the year. The chain said quarterly net income fell to $1.2 billion, or 71 cents per share, compared with $1.59 billion, or 81 cents per share, during the year-ago quarter. Analysts had projected earnings of 61 cents per share.

• Target announced a 7.6 percent drop in second-quarter profits yesterday and offered a cautious outlook for the third quarter. The retailer said it earned $634 million, or 82 cents per share, for the three-month period ended Aug. 2, vs. $686 million, or 81 cents per share, a year earlier. Analysts had predicted a profit of 76 cents per share.

• Hewlett-Packard said its third-quarter profit jumped 14 percent, beating Wall Street's expectations. HP said it earned $2.03 billion, or 80 cents per share, in the May-July period, vs. $1.78 billion, or 66 cents per share, a year earlier.

Also in business ...

Cranberry-based discount teen retailer rue21 has opened a 3,800-square-foot office in New York City to be close to vendors and suppliers. ... Mall operator Simon Property Group Inc. has tapped Strip District marketing firm Mullen Pittsburgh to serve as public relations agency-of-record for its three area malls, Ross Park Mall, South Hills Village and Century III Mall. ... Circuit City said yesterday that it was still considering a sale four months after announcing that was reviewing its options to improve shareholder value. ... US Airways announced plans to begin nonstop service in July between its Philadelphia hub and Tel Aviv, Israel.