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WEDNESDAY, DEC. 20, 2017 | IN THIS ISSUE
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General Mills today reported second quarter earnings of 74 cents per share, a decline of 8 percent,
despite signs of reviving sales.
Net sales were up 2 percent to $4.2 billion, with the strongest gains coming from the company's food
service and convenience store channel, and from its Europe and Asia regions. North America retail sales were up 1 percent.
The improvement in North America retail sales were driven by a 7 percent sales increase for the
United States cereal operating unit and a 5 percent increase in snacks. Initial sales for the General
Mills' new Chocolate Peanut Butter Cheerios was a strong contributor. "Taste-oriented" cereals such as
Lucky Charms, Cinnamon Toast Crunch, Reese's Puffs and Cocoa Puffs led the category for General
Mills.
Operating profit declined 5 percent to $730 million, due to lower profit margins, which were partially offset by higher sales. The food manufacturer, with major operations in Cedar Rapids, now expects full-year sales to be flat or down slightly, an improvement from its earlier guidance for a decline of 1 to 2 percent.
"We're executing better with stronger innovation, more effective brand building and better merchandising leading to market share gains in the majority of our key global platforms," CEO Jeff Harmening stated in a press release. Although profit was down in the first half, Mr. Harmening expressed confidence General Mills will deliver profit growth in the second half.
"I'm encouraged by the step that fiscal 2018 represents in our effort to return our business to consistent top- and bottom-line growth for the long term," Mr. Harmening stated. General Mills operates its largest cereal and fruit snacks plant in Cedar Rapids.
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IMAGE JLG Architects
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Coralville City Administrator Kelly Hayworth predicts the $46 million Iowa Arena project will be a "game changer" for the region and Josh Schamberger, president of the Iowa City/Coralville Area Convention and Visitors Bureau, says the ability to host large-scale events from hockey to big-name concerts could bring in millions in new tourism revenue annually to area hotels, restaurants and other businesses.
The 6,200-seat arena, set to break ground early next year and open in August 2019, was a main topic of discussion at the Coralville Economic Development Holiday luncheon Dec. 19, generating plenty of enthusiasm from a number of speakers including Coralville City Engineer Dan Holderness, who outlined a $7.8-million roads project to improve access to the arena and the surrounding Iowa River Landing area, and concert manager Dave DeWaard, whose Basis Entertainment coordinates events and concerts like Forest City's annual Tree Town Festival and 2016's Back Porch Revival headlined by Blake Shelton.
"[Concert goers] are going to Omaha, they're going to Des Moines, they're going to Chicago and guess what? They all have to come through here to get there," Mr. DeWaard said, adding that the 55,000 attendees for Back Porch Revival proved there was demand and support for big concerts in the Corridor. "You have everything you need here to make this a permanent stop."
In his remarks, Mr. Schamberger agreed, pointing out that Carver Hawkeve Arena, once a major touring stop, hadn't hosted a large concert event since the early 2000s.
"This community needs and will do very well in the concert market," he said, adding that the venue would also host large sporting events from hockey matches to gymnastics, and youth sports. Negotiations are underway, he added, to make the arena the new home of University of Iowa women's volleyball.
"This stuff is big business," he said, citing the 2016 USA Olympic Wrestling Trials held in Iowa City, which brought in $5.6 million in tourism income as well as projections indicating youth sports tournaments held in the arena complex alone could fill up to 4,300 hotel rooms a day.
Mr. Schamberger said the arena complex, which includes a field house, practice arena and turf area would spur $185 million in additional development, including two new hotels, a large block of retail, residential units and both the Antique Car Museum and the Johnson County Historical Society Museum.
The sports and entertainment complex is
being funded by $12 million in state reinvestment funding from the Iowa Economic Development Authority, a projected $13.5 million in naming rights and sponsorships, $10 million in corporate giving, $5.5 million from property sales to private owners and $5 million in tax credits.
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 Johnson County to gauge impact of minimum wage hike
Almost a year after a countywide minimum wage of $10.10 went into effect, members of the Johnson County Minimum Wage Advisory Committee will present findings of a report assessing its impact on the local economy.
The c
ommittee, composed of Johnson County residents, will unveil the report, "Johnson County's Economic Performance Before and After the Minimum Wage Increase," at 9:15 a.m. Dec. 21 at a special meeting in the county's second floor board room.
The Johnson County Board of Supervisors passed an ordinance establishing a countywide minimum wage in September 2015. Under that ordinance, the minimum wage was set to be raised in three steps, eventually increasing to $10.10 per hour on Jan. 1, 2017. The impact of the ordinance has been blunted, however, by legislation signed in March by former Gov. Terry Branstad eliminating the ability of Iowa jurisdictions to set a minimum wage above the state minimum wage.
Although the governor's action made Johnson County's ordinance unenforceable - as well as a similar ordinance passed in Linn County - officials have urged employers to voluntarily comply with the ordinance, citing the high cost of living in the area and the economic and social benefits of reducing poverty.
An Iowa City Area Chamber of Commerce survey suggested a number of businesses planned to comply. In its survey of about 90 businesses, 78 percent said they would continue paying the $10.10 wage or a higher wage. Another 12 percent were undecided and just 10 percent said they wouldn't continue with the wage increase.
Tomorrow's report will show how well - or poorly - that survey held up.
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For the complete list of this week's Movers & Shakers, see the Dec. 18 edition of the CBJ.
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UI cancer center 'over-performs' for fourth year running
Only 7 percent of U.S. centers achieved this distinction in 2017. The ranking report is a critical measure to help patients, families and referring providers identify the best transplant centers to treat blood cancers like leukemia, myelodysplastic syndromes, myelofibrosis, myeloma and lymphoma. The report compares the predicted and actual survival rates of patients across a rolling three-year period, adjusting for several risk factors in order to more accurately compare programs.
The predicted survival for allogeneic transplant recipients treated at Iowa was 64.2 percent but the actual survival rate was 73.1 percent. Iowa's BMT Program was one of only two "over-performing" programs in the Midwest in 2017.
"Only great teamwork has made this possible," BMT Interim Director Dr. Margarida Magalhaes-Silverman said in a message to colleagues.
CIBMTR has published annual rankings since 1994 and has used the current methodology since 2005. The
report is publicly available at
bethematch.org and at a U.S. Department of Health and Human Services website.
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Short-Term Event Planner
Dec. 21
Open Coffee, by Washington Chamber of Commerce, 8-9 a.m., Café Dodici, 122 S. Iowa Ave., Washington. This event is open to the public and anyone interested in an open discussion about fostering creativity, innovation, and entrepreneurship in the Corridor is encouraged to attend. Free. Call (319) 653-4712 for more information.
Dec. 22
Innovation Ecosystem Tour, by NewBoCo, 3-4 p.m., Geonetric, 415 12th Ave. SE, Cedar Rapids. NewBoCo representatives will offer a public tour of the Geonetric building and some of the innovative things occurring inside, including Vault Coworking, the Iowa Startup Accelerator and Iowa BIG. Free and open to the public. For more information or to register, visit
bit.ly/2nVnWtt.
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Headlines from CBS2/FOX 28
These news items are provided by CBS2/FOX 28
A holiday light display that has become somewhat of a Corridor tradition could face a big fine in North Liberty because the city says it can't be on the public right of way between the sidewalk and the street. The Santa house display shined bright in Coralville for decades, but when its previous owners could no longer carry on the tradition, Josh Covert picked it up. "They were very receptive to the idea; we met with them, went out to dinner with them and now here it all is in our yard," says Mr. Covert. It is a stunning display of light with more than 100 lighted Santas of all sizes and lighted arches that line the sidewalk at 1655 Red Barn Drive. Up until this point, the display has had a warm reception from neighbors and the wider community. "It's gorgeous you know and people come through and the little kids are happy they're smiling," says neighbor Steve Gibbons. On Monday, Mr. Covert says he got an email from the city with a fine of $750 plus court costs. So he reached out to the city attorney.
Read the rest of the story here.
T
hese news items are provided by CBS2/FOX 28
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CBS2 Chief Meteorologist Terry Swails' Weather First Forecast
A winter storm will move through the central part of the country tomorrow and bring wintry precipitation and much colder air to Eastern Iowa. Overall, the storm is less organized and weaker and will lead to light accumulations of rain/ice/sleet/snow across the area. Regardless, bitter cold will be charging into the Midwest over the weekend. Today will be cooler with a mix of sun and clouds. Temperatures will just climb into the mid-30s this afternoon - still above normal. The tumble continues with temperatures in the low to mid-30s Thursday and Friday afternoons. The winter storm will begin to impact the area on Thursday morning with some rain showers and a wintry mix. The highest chance of a wintry mix will be between I-80 to Highway 20 where light accumulations of ice/sleet will be possible, likely less than a tenth of an inch. North of Highway 20 is where the higher chance for light snow will be. Accumulations will be between a trace to an inch of snow. Near the Iowa/Minnesota border locally higher amounts of two to three inches will be possible.
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