WEDNESDAY, JAN. 23, 2019  |  IN THIS ISSUE  

United Technologies is the parent company of Cedar Rapids-based Collins Aerospace, a leading supplier to the commercial aviation industry. CREDIT: UTC
United Technologies Corp. (UTC), the parent company of Collins Aerospace Systems, reported sharply higher sales and earnings for the fourth quarter of 2018.

Adjusted earnings per share rose 22 percent to $1.95. Net income for the quarter rose 73 percent, boosted by the acquisition of Cedar Rapids-based Rockwell Collins, and sales were up 15 percent, to $18 billion, a news release said.

In the quarter, commercial aftermarket sales were up 11 percent at Pratt & Whitney jet engines and up 8 percent organically at Collins Aerospace Systems. New equipment orders at Otis, the company's elevator business, were flat organically versus the prior year. Equipment orders at the Carrier heating and cooling equipment business increased 3 percent organically.

For the full year, UTC reported adjusted earnings per share rose 14 percent to $7.61. Company officials forecast earnings in a range of $7.70 to $8 for fiscal 2019.  Results beat Wall Street expectations, sending shares higher in pre-market trading.

In a press release, UTC chairman and CEO Gregory Hayes called 2018 a transformational year for the company. 

"We announced our intention to separate into three global, industry-leading companies, and closed the Rockwell Collins acquisition in November," Mr. Hayes said.  "We also delivered strong fourth quarter and full-year 2018 results, including the best year of organic sales growth in over a decade, driven by our focus on meeting customer commitments, ongoing innovation, strong execution and cost reduction."
 
Two Rivers Bank & Trust has entered into an agreement for the purchase of two Dubuque Bank and Trust branch offices in in Keokuk, operating under the name First Community Bank, according to a news release. Dubuque Bank and Trust is a wholly-owned subsidiary of Dubuque-based Heartland Financial USA.

The transaction remains subject to regulatory approval and other customary closing conditions and is expected to close in the second quarter of 2019.  The transaction is not expected to have a material effect on Heartland's consolidated financial results.

"As a community bank headquartered in Burlington, this will be a natural fit with the geographic footprint and culture of Two Rivers Bank & Trust, and we look forward to further building relationships in the Keokuk community," said Two Rivers President and CEO Matthew Shinn in a statement. "We extend a warm welcome to the First Community Bank Branch customers and employees to our organization."

All current employees of the First Community Bank Branches have been offered employment with Two Rivers Bank & Trust. The First Community Bank Branches had deposits of approximately $83 million as of Sept. 30, 2018.

Tut Fuller,  president and CEO of Dubuque Bank and Trust said, "Reaching this agreement with a community bank such as Two Rivers Bank & Trust is a win-win for our customers and employees."

Barb Smidt, First Community Bank's Market President, added, "After meeting with Two Rivers Bank & Trust, I feel that we have found a partner who shares our commitment to customers and their employees, and is headquartered approximately 40 miles from Keokuk. We believe that our customers will be served well by Two Rivers Bank & Trust." 
 

For the complete list of this week's Movers & Shakers, see the Jan. 21 edition of the CBJ.

Linn Street Dive brings a new concept to the former Devotay space in Iowa City's Northside with a blend of West Coast flavors and Midwest comfort food.

Owners Mark and Jade Paterno, who took over Devotay from its founder, the late Kurt Friese,  have recruited Chef Clinton Dunn, who recently returned to Iowa City from Los Angeles, to head up the kitchen. 

"Linn Street Dive is a collaboration that we're really excited for. Chef Clinton arrived in Iowa City ready to make a name for himself and he has blown us away with his food, "Ms. Paterno stated in a news release.

Mr. Dunn, whose LA experience includes kitchen work at Spago, Maximilliano, and Napa Valley Grille, is an avid fisherman who is passionate about sourcing sustainable seafood. He is known for his use of high-quality ingredients, inventive plating techniques and interacting with his guests as they dine.

The menu's small plates, soups, salads, entrees, sides and desserts range from $6-$36, and will feature rotating special entrees with recommended drink pairings.  

Linn Street Dive will host wine dinners, beer tastings, game nights and other events, in a casual-atmosphere. 

"We wanted our name to reflect a very tongue-in-cheek tone. If you've been in the space, it's obviously not a dive, but we will serve you a mind-blowing lobster bisque and recommend you try it with a can of Hamm's" Ms. Paterno added.

The restaurant, which will be open Wednesday-Sunday for dinner, offers direct billing for all University of Iowa departments and is available for private rentals. 

Iowa Attorney General Tom Miller and 45 other attorneys general have reached a $120 million consent judgment with Johnson & Johnson and its subsidiary, DePuy, to resolve allegations that DePuy unlawfully promoted two metal-on-metal hip implant devices, according to a news release. Iowa's share of the settlement will total about $1.7 million.

In a complaint, Mr. Miller and the attorneys general allege that DePuy engaged in unfair and deceptive practices in its promotion of the ASR XL and Pinnacle Ultamet hip implant devices by making misleading claims as to the longevity, also known as survivorship, of metal-on-metal hip implants.   
 
DePuy advertised that the ASR XL hip implant had a survivorship of 99.2 percent at three years when the National Joint Registry of England and Wales reported a 7 percent revision rate at three years. Similarly, DePuy promoted the Pinnacle Ultamet as having a survivorship of 99.8 percent and 99.9 percent survivorship at five years when the National Joint Registry of England and Wales reported a 2.2 percent 3-year-revision rate in 2009 increasing to a 4.28 percent 5-year-revision rate in 2012.  

Some patients who required hip implant revision surgery to replace a failed ASR XL or Pinnacle Ultamet implant experienced persistent groin pain, allergic reactions, tissue necrosis, as well as a build-up of metal ions in the blood.  The ASR XL was recalled from the market in 2010. DePuy discontinued its sale of the Pinnacle Ultamet in 2013.

"Both doctors and patients need accurate and up-to-date information, and the settlement includes provisions to improve transparency and prevent harm to consumers," Mr. Miller said in a statement.  

Johnson & Johnson has settled thousands of consumer claims over the hip implants, and others continue in litigation. As part of the consent judgment, DePuy has agreed to reform how it markets and promotes its hip implants. 
 
Jan. 24
Monthly Breakfast Roundtable , by SCORE of East Central Iowa, 7:30-9 a.m., Scott's Family Restaurant, 1906 Blairs Ferry Road NE, Cedar Rapids. A business topic will be discussed, along with networking among participants. Entrepreneurs and those thinking of starting a business are invited. Free. For more information or to pre-register, visit scorecr.org.
 
Economic Alliance Annual Meeting , by Cedar Rapids Metro Economic Alliance, 11:30 a.m.-1 p.m., DoubleTree by Hilton Cedar Rapids Convention Complex, 350 First Ave. NE, Cedar Rapids.The annual meeting is the Economic Alliance's signature event where member businesses and regional champions come together to celebrate achievements and learn about the organization's goals for the year ahead. For more information, visit bit.ly/2S6vsfE.
 
January General Meeting, by Professional Women's Network, 11:30 a.m.-1 p.m., Geonetric, 415 12th Ave. SE, Cedar Rapids. Hear from Fusion Studio owner Marsha Nieland about practical ways to live calm, conscious and connected lives. Cost: $15 for members. For more information, visit   bit.ly/2SpTkLa .
 
Business Law Bootcamp , by SCORE of East Central Iowa, 6:30-8 p.m., Linn Area Credit Union, 3375 Seventh Ave., Marion. Learn about basic principles and receive guidance on business law. The program will cover topics including new legal entity formation, lease issues, trademarks, service agreements and more. Free. To register, visit scorecr.org.
 
Jan. 25
Leadership Begins Within: Developing Self-Awareness, by Jennifer Zach, 12:30-4:30 p.m., Cedar Rapids Public Library - Conference Room, 450 Fifth Ave. SE, Cedar Rapids. Build your skills as a leader by gaining a deep understanding of yourself, your habits and your assumptions. Cost: $45-$95. To register, visit bit.ly/2Ev9peO.
 
Jan. 28
Coralville Roundtable, by Iowa City Area Chamber of Commerce, noon-1 p.m., Vesta, 849 Quarry Road, Coralville. Roundtables are social lunches over the noon hour. All are invited to network, keep up-to-date with chamber and community events and frequent a member restaurant or business. Free. Contact Emily at (319) 337-9637 or info@iowacityarea.com with questions.
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Headlines from CBS2/FOX 28
These news items are provided by CBS2/FOX 28  
 
In Iowa City, council members are making changes to the Ped Mall improvement plan, after discussions over some controversial benches. The new benches have a bar running down the middle. Critics call the design hostile because it prevents someone from laying down on them. Iowa City Catholic Worker House has been working with the city to have the benches removed, saying they prevent the homeless and people with a medical emergency from using them. City Manager Geoff Fruin said the city will keep some of the benches with the bars and others will be installed without them.  This comes after a work session to discuss the cost associated with making changes on Tuesday.  The Catholic Worker House is calling this decision a victory. City leaders also plan to keep some of the old decorative benches in the Ped Mall area.

Survivors of domestic violence who seek help from non-profit service providers are being affected by the partial government shutdown. "Rental assistance, food stamps, and Social Security," said Jennifer Upah-Kyes, the executive director of the Deaf Iowans Against Abuse. Those are just several areas where Ms. Upah-Kyes and her organization provide additional assistance to their clients. It's also why she's worrying, especially for those clients who receive rental assistance from the government.
"They won't be able to get assistance with their rent and therefore they could be evicted from where they're living," she said. The Deaf Iowans Against Abuse isn't alone in worrying. Friends of the Family runs a rapid rehousing program that relies heavily on clients receiving rental assistance and the organization's grants. If the shutdown continues, the organization says both assistance and grants are in jeopardy. "That will make it very hard in February or March as people are needing to move into rentals to not have the finances to do so," said Kayla Mehlert, human trafficking specialist for the organization in Cedar Rapids. Ms. Mehlert says the rapid rehousing program, which is helping more than 20 families, would be the first to go if grant funding stopped. Another concern for domestic violence service providers is food stamps being issued in the future. Some Corridor organizations tell CBS2/Fox28 News after their food bought using food stamps runs out, many clients come to them for further food needs. For some of those non-profits, a good amount of food they can supply comes from grants, too. 

T hese news items are provided by CBS2/FOX 28 
CBS2 Chief Meteorologist Terry Swails' Weather First Forecast

The strong winter storm will move out this morning. The active, wintry pattern will continue with arctic air and several clippers that will bring additional light snow through the weekend and next week. Strong winds will lead to blowing and drifting snow along with wind chills near zero. Temperatures will be in the teens today. Skies continue to clear tonight and temperatures will drop down into the single digits. Winds will stay strong and wind chills will be well below zero in the morning. Temperatures will be in the low teens Thursday afternoon with mostly sunny skies. An arctic front will move through  Eastern Iowa late tomorrow and send temperatures down into the teens below zero. Wind chills will be in the range of -20 to -30. High temperatures will struggle to reach zero Friday afternoon. On top of that, a clipper will move through Eastern Iowa in the afternoon and may produce some additional light snow.