FRIDAY, JULY 31, 2020 | IN THIS ISSUE

• Collins Aerospace announces layoffs amid flagging sales
• UI demotes dean of College of Liberal Arts and Sciences
• BAE completes acquisition of Collins GPS business
• MidWestOne tops estimates with a bounceback in Q2
• Van Meter to hold 'TRANSFORM' series for manufacturers
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
Collins Aerospace announces layoffs amid flagging sales
Collins Aerospace has announced an unspecified number of layoffs due to a steep drop in sales amid the COVID-19 pandemic.

“Collins Aerospace continues to experience and forecast reduced business due to COVID-19," company officials said in a statement, according to news partner KCRG-TV9. "While we were hopeful the previous cost-cutting steps to align our business with lower levels of commercial demand would be enough - they simply were not.”

The number of impacted employees was not immediately available, although Greg Hayes, CEO of parent company Raytheon Technologies Corp., said Collins Aerospace was planning cuts of $600 million during a conference call earlier this week . The company has already cut $300 million, including $90 million since the beginning of this year.

Raytheon released second quarter earnings earlier this week, and while adjusted earnings per share of 40 cents outpaced the Zacks Consensus Estimate by 300%, the company reported a sales decline of more than $14 million. Adjusted sales at the Collins Aerospace Division dropped 35% year over year.

During the conference call, Raytheon Corporate Vice President Neil Mitchell said the sales decline was “driven primarily by the adverse impacts of COVID-19 on the aerospace industry.”

KCRG reports laid-off employees will receive a separation payment, transition payment and continuation of benefits. Services will also be available to support those employees through the transition.
UI demotes dean of College of Liberal Arts and Sciences
In the latest University of Iowa leadership shake-up, Steve Goddard is being replaced as dean of the College of Liberal Arts and Sciences (CLAS), and will assume a faculty role "consistent with his appointment as professor in the Department of Computer Science."

Interim Executive Vice President and Provost Kevin Kregel has named Sara Sanders interim dean of CLAS, the UI announced Thursday. The current associate dean for strategic initiatives and director of diversity, equity, and inclusion within CLAS, Ms. Sanders will take over from Mr. Goddard effective immediately.

Mr. Goddard had served as CLAS dean since June 2019 and the UI gave no reason for the sudden change. The Daily Iowan, however, reports it follows an "unspecified investigation that found Goddard had violated the Policy on Ethics and Responsibilities for UI staff." The DI cited a July 29 letter from Mr. Kregel to Mr. Goddard indicating multiple concerns with his performance as dean and concluding his conduct "warrants removal" from the dean position. Mr. Goddard came under heavy fire in June for controversial comments made at a town hall meeting addressing pandemic-related concerns.

Ms. Sanders, a professor in the School of Social Work, served as the undergraduate program director from 2011-2015 and as director of the School of Social Work from 2015-2019. She also was an administrative fellow in CLAS from 2018-2019.

“Sara has successfully served in leadership positions within the college for almost two decades, earning the respect and trust of her colleagues,” said Mr. Kregel in a release. “I’m confident that she will provide the leadership needed to continue the history of excellence in education, research and scholarship within the college.”

Ms. Sanders will receive an annual salary of $305,000 and will serve until a new dean is hired. Her appointment must be approved by the state's Board of Regents.

IMAGE: Sara Sanders. CREDIT UI
BAE completes acquisition of Collins GPS business
BAE Systems today announced it has completed the acquisition of the Collins Aerospace's military Global Positioning System (GPS) business based in Cedar Rapids and Coralville from Raytheon Technologies Corp.

The $1.925 billion acquisition had been announced in January as part of a divestiture required to secure antitrust approvals for the merger of Ratheon Corp. with United Technologies Corp. that formed Raytheon Technologies. BAE also acquired Raytheon’s tactical airborne radio business in the deal.

“Moving forward, our focus will be on the successful integration of our businesses to maximize the value we offer to our customers,” said Jeff Jones, director of Airborne Radios for BAE Systems. “We look forward to exchanging ideas and learning from each other to foster a culture of innovation that will further enhance our technologies and product offerings to support our shared commitment to the warfighter.”

The military GPS unit has a workforce of approximately 700 employees who will be transferring to BAE Systems from Collins Aerospace. BAE is working with Ryan Companies to build a $139 million classified defense products facility in Cedar Rapids to house the operations, with support from the state of Iowa and the city of Cedar Rapids.

The business designs and produces advanced, hardened and secure GPS products with a range of form factors, including products designed for space-constrained and harsh environments. It is also developing next-generation GPS technologies for the U.S. military – including M-Code – that will further improve security and anti-jamming capabilities for critical defense applications.

“This partnership will enable us to build on our market leadership and bring new discriminating capabilities to our customers, including the U.S. Department of Defense and its allies,” said Greg Wild, director of Military GPS, in a news release. “We’re excited to be joining the BAE Systems family. They appreciate our legacy of innovation and will provide opportunities for continued business growth and success.”
MidWestOne tops estimates with a bounceback in Q2
Shares of MidWestOne Financial Group jumped this morning after the Iowa City-based financial institution reported it earned $11.7 million in the second quarter, reversing a tough first quarter and far exceeding Wall Street's expectations.

The parent company of MidWestOne Bank reported second quarter earnings of 73 cents per diluted common share, up from the first quarter's loss of 12 cents per share, and one cent higher than the second quarter of 2019. Analysts had expected earnings of just 22 cents per share, according to Zacks.

Revenues slipped about 1% from the previous quarter, to $46.9 million, but the bank also slashed its credit loss expense to $4.7 million, a decrease of $17 million, or 78%, from the first quarter. The quarter's credit loss expense reduced the bank's earnings per common share by approximately 22 cents in the quarter, according to the company.

Noninterest income fell slightly, while interest income grew as loan volumes increased. CEO Charles Funk said the company enjoyed "solid performance" from its home mortgage unit, as low rates continued to drive refinance and purchase activity.

MidWestOne also provided some visibility into its PPP lending activities and loan relief efforts so far this year. As of June 30, the company reported funding 2,534 PPP loans totaling $345.4 million, with an average loan size of $136,000. It has also offered $474.9 million in payment deferrals and mortgage forbearances to customers, with roughly 32% of the modifications being interest-only payments and 68% being full payment deferrals.

“We are pleased with our results in the second quarter, particularly our bankers’ efforts in the origination of SBA PPP loans during a period of unprecedented challenges for our customers, employees and communities," Mr. Funk said in the earnings report. "While we believe there will likely be volatility in earnings in this economic environment, the quarterly return on average equity of 9.21% and a return on average tangible equity of 13.50% represents solid performance."

Shares of MidWestOne Financial Group (MOFG) were up 2.5% this morning, to $17.89.
Van Meter to host 'TRANSFORM' series for manufacturers
Cedar Rapids-based Van Meter Inc. announces it will host TRANSFORM, a complimentary webinar series for leaders addressing the challenges and opportunities of modern manufacturing.

The series begins Sept. 3 and ends Nov. 12. Each week during a 60-90 minute-session, industry leaders will share best practices and insights on how to leverage people, processes and technology to transform industrial operations for the future.
 
“We’re bringing together some of the most forward-thinking people in manufacturing,” said Jeff Spadaro, vice president of automation at Van Meter, in a release. “It’s time to start a serious dialogue about the changes happening in the industrial space and what area companies can do to leverage the changes.”
 
The TRANSFORM speaker lineup kicks off with Bob Murphy, vice president of Connected Enterprise Consulting at Rockwell Automation, and includes other digital change agents like Doug Kramer from Kosei St. Mary’s Corporation, Stan Askren, retired chairman and CEO of HNI Corporation, Chris Brogli of ROSS Controls.
 
TRANSFORM registrants can customize their learning opportunity by picking and choosing from 11 unique sessions. Topics will include everything from the importance of adopting smart manufacturing technologies and how to implement and leverage data to enhance operations to automation strategies for tackling workforce challenges, and things to consider when developing a holistic safety program.
 
Learn more about the TRANSFORM sessions and register here . 
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Short Term Event Planner
 
Aug. 4 
COVID-19 Manufacturer Roundtable , by Iowa State CIRAS, 7:30-8:30 a.m., online. Get updates on COVID-19, share best practices and hear from expert speakers. Free. To register, visit bit.ly/314Olpo . 
 
Digital 5S for Organizations , by Iowa Lean Consortium and Iowa State CIRAS , 9 a.m., online. Learn how to apply 5S principles to digital information in your organization. Cost: ILC members, free; non-members, $100. To register, visit bit.ly/2DlAnXF .
 
Aug. 5
1 Million Cups , by 1MC Iowa City, 9 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MillionCupsIC .
 
The SBA’s Mentor Programs: What You Need to Know , by Iowa State CIRAS, 9-11 a.m., online. Matthew Schoonover, an attorney from Koprince Law, will explain the key factors to consider when entering the SBA’s Mentor-Protégé program. Free. to register, visit bit.ly/3gc6yaO .
 
Financial Wellness for Young Professionals , by Impact CR, noon-1 p.m., online. Lindsay Handy will tell her story of financial hardship, and how she grew from loss to build her financial foundation. Kelsey Merrill will cover the importance of knowing your credit score and how to create a budget. Free. To register, visit bit.ly/331VQjf . 
 
Start Smart Workshop , by NIACC Pappajohn Center and the Small Business Development Center, 6-8 p.m., online. Learn how to create a business plan, conduct market research and how to register a business. Free. To register, contact Mary Spitz at (641) 422-4342 or [email protected] .
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Headlines from KCRG-TV9
These news items are provided by KCRG-TV9  
 
One month ago Thursday, the Cedar Rapids Kernels learned there would be no minor-league baseball season for 2020. After drawing more than 150,000 fans last year, the team is trying to keep a connection with fans in a year without baseball. On Thursday there were no players on the field and no announcer in the booth, but about 100 fans came out for the first trivia night at Veterans Memorial Stadium. “It is very disappointing,” said Jeff Pick of Cedar Rapids. “I just love baseball; we come out here a lot.” Pick, a life-long baseball fan and season ticket holder was among the group. His team of four was trying to answer sports trivia questions while also supporting the team. “We’re trying to do whatever we can to help them recoup money and just to be out of the ballpark,” he said. They’ve hosted fireworks on the 4th of July as well to try and make up for lost revenue, but Senior Director of Corporate Sales and Marketing Jessica Fergesen said the money from these events might only make up for a couple of games. Read the full story here .

A nonprofit that helps survivors of domestic violence says they have seen a surge in calls, and it is leaving the group to figure out how to best handle the number of people calling for help. Leaders with the Domestic Violence Intervention Program in Iowa City say once the coronavirus pandemic started to close businesses down, they expected the number of phone calls they received to level off and slow down, too. Since May, as things started to reopen, the number of calls for help has increased significantly. Leaders say calls are up 28% compared to when the pandemic first began. During the last fiscal year for the group, they served about 1,900 people. Because of the increase over the last three months, staff now say they're just about to match last year’s mark, as they have now taken more than 1,875 calls. “As things began to open up, people began to move around, the weather got nicer so you could maybe make that phone call while you were out on a walk alone, not necessarily isolated in your home as much,” said Alta Medea-Peters, the director of community engagement for DVIP. Medea-Peters says they are looking at increasing the number of staff to help meet demand, as well as hoping to receive donations for some much-needed items. Those items include baby formula, diapers size 5/6, sugar, oil, gift cards and microwave popcorn.

These news items are provided by KCRG-TV9
Your KCRG-TV9 First Alert Forecast
Today continues to look great with a mix of sun and clouds alongside afternoon highs in the lower 80s. Dew points will continue to drop, making it feel pretty decent outside. Tonight, we should be able to open the windows up as lows should fall to the upper 50s and lower 60s. Look for a nice day tomorrow with highs into the lower 80s. On Sunday, a few scattered showers and storms will work their way southeast along a cold front into our area. Rain amounts appear to be pretty low at this time.