Good morning, MBA readers,
Third-quarter earnings reports are upon us, bearing both good and bad outlooks for Missouri companies. At Cerner, a decision to cut an outsourcing contractor will cost the North Kansas City company over $130 million in annual revenue, but leave core earnings intact. Anheuser-Busch InBev has cast a gloomy outlook as profits wane in the face of slow demand in large developing markets. But there’s some good news ahead of GM’s earnings call Tuesday: The company has finally resolved a 40-day labor strike. Plus, the deal may serve as a model for future UAW negotiations with other automakers. Scroll down to kickstart this week with more about these and other top business stories from around the state.
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Speaking Startup: The art of the elevator pitch
The elevator pitch is an essential part of any entrepreneur’s repertoire. And, though it usually takes less than a minute, a well-executed elevator pitch can leave a lasting impression. In the latest episode of Speaking Startup, we get tips for an effective elevator pitch from Columbia Startup Weekend organizers and participants. Plus, we chat with one of the winning entrepreneurs from Startup Weekend and catch up with Fred Foley, who pulls double duty as a restaurateur and the mayor of Glasgow, Missouri.
A-B InBev loses $13 billion in value as beer demand fizzles in Brazil, South Korea
The brewer lost over $13 billion in market value on Friday after reporting weaker-than-expected growth in third-quarter profits. Anheuser-Busch InBev’s downcast report highlights the challenge facing global brewers in large developing markets such as Brazil and South Korea, where slow economic growth has cooled demand for beer. (Reuters)
Downtown KC building could be the new home for USDA research agencies
Sources say the State Street building in Kansas City is the likely new headquarters for the Economic Research Service and the National Institute of Food and Agriculture. According to a brochure from commercial real estate firm Colliers International, five of the building’s six floors are available to lease at $22.50 per square foot. (Kansas City Star)
CFO: Cerner outsourcing cut will hit revenue, but not earnings
Cerner CFO Marc Naughton said in an earnings call that the termination of its outsourcing contract with California-based Adventist Health will reduce the North Kansas City health care IT firm’s annual revenue by $170 million, but have little effect on profits. The cut will transition about 1,700 Cerner workers back to Adventist next month. (Kansas City Business Journal)
New Ferrellgas lawsuit highlights power struggle with trustee of employee stocks
Ferrellgas has sued GreatBanc Trust, the Illinois-based trustee of its employee stock ownership program, which owns about 23.4% of the company. The Overland Park, Kansas-based company has accused GreatBanc of forcing transactions with which its board of directors disagrees. (Kansas City Business Journal)
St. Louis convention project is ‘held up,’ mayor says, as city waits for bonds
St. Louis Mayor Lyda Krewson said last week that the $175 million America’s Center project has been “held up” for the last 10 months due to a conflict with the city comptroller. A spokesman for Comptroller Darlene Green said her office plans to issue the bonds needed for the project soon, but did not specify a timeline. (St. Louis Business Journal)
St. Louis airport group objects to consultant’s new Lambert documentary
The group exploring the privatization of St. Louis Lambert International Airport has raised questions over a new documentary about the airport produced by Grow Missouri, one of several consultants hired by the city to consider whether to privatize the airport. Paul Payne, head of the Airport Advisory Working Group, said no one has reached out to him about the film and that the film itself could cause “problems.” (St. Louis Public Radio)
Columbia says electric capacity can now support growth for a decade
Columbia Water & Light reports that the city’s electric system now has enough capacity to support the city’s growth for the next 10 years. (Columbia Missourian)
St. Louis construction software startup raises $3.5m
Ryvit, a Brentwood-based construction software firm, has raised $3.5 million in a funding round led by St. Louis-based Dreampact Ventures and Hermann Cos. of Clayton. (St. Louis Post-Dispatch)
New discount grocery store satiates north St. Louis food desert
Save A Lot, the St. Ann-based grocery chain, has opened a 17,000-square-foot store in a part of north St. Louis where residents previously had to travel outside their neighborhood for produce and meat products. (St. Louis Public Radio)
State investigates mobile marijuana clinic over allegations of illegal sales
The Missouri Highway Patrol is investigating the Cannabus, a medical marijuana clinic based out of a roaming Mercedes-Benz bus, over allegations that its physicians are selling cannabis products before the state issues dispensary licenses to prospective businesses. St. Louis psychiatrist Zinia Thomas, who runs the Cannabus, blames the allegations on social media fervor as the clinic continues to issue physicians’ certificates for medical marijuana around the state. (Columbia Missourian)
Say that again
“Banks in general who are looking for a partner may have a sense of urgency, given the headwinds out there.”
That’s Jim Lally, president and CEO of Enterprise Financial Services, who reaffirmed that his St. Louis-based firm remains on the prowl for another bank for sale, the St. Louis Business Journal reports. While Enterprise does not yet have another deal on the horizon, it is currently in talks with “several companies,” which may have more reason to deal in the current merger market, Lally said. Earlier this year, Enterprise completed a $213 million takeover of Trinity Capital and its New Mexico-based Los Alamos National Bank, making it the second-largest bank in St. Louis with more than $7 billion in assets.
That’s the record ratification bonus that General Motors will pay nearly 50,000 United Auto Workers members to end their 40-day labor strike, CNBC reports. Under the deal, out-of-pocket health care costs will remain unchanged at 3% for workers, who will also receive lump-sum bonuses or raises each year. The company maintains operational flexibility without significantly increasing its recurring fixed costs, while the union will use this deal as a framework for negotiating with Ford and Fiat Chrysler.
Hello, my name is
This St. Louis-based fiber startup has raised $1 million in seed funding as part of a $3 million offering, the St. Louis Business Journal reports. Arcadian, which develops and operates long-haul fiber networks for tech firms and carriers, said it will use the funding to bolster its right-of-way acquisition, partnering and engineering teams. The company is currently developing a fiber route between Salt Lake City and Phoenix as well as between Phoenix and Denver. Arcadian was founded in 2018 by President Derek Garnier and CEO Dan Davis, who was an executive at CenturyLink until 2017.
It’s been a pleasure doing business with you this morning.