News Column

Ikonics reports earnings drop for 2013

February 24, 2014

Duluth News Tribune

Feb. 24--Ikonics Corp. is reporting a 2 percent earnings drop for 2013.

But it could have been worse.

Strong fourth-quarter earnings of $360,649, or $.18 per diluted share, accounted for more than half of the year's net earnings. It followed a nearly 50 percent drop in net earnings in the third quarter, compared to the year before.

Meanwhile, total sales for 2013 reached nearly $17.5 million, a 1 percent increase over 2012 sales.

With the new year, the imaging technology company is off to a good start. In January, it got its largest single order in the company's history. CEO Bill Ulland expects the order to be shipped in the first quarter, resulting in record first-quarter sales and earnings.

The company's Micro Machining aerospace business also is ramping up. The company plans to boost its capacity in the second quarter in anticipation of an increased demand.

"This business is being driven by a new technology used by our customers, and its growth will be determined by industry acceptance of this technology," Ulland said in a prepared statement. "However, we believe that we are supplying the cutting edge of the aerospace industry, and that growth is likely to be substantial as the technology is adopted."

The company's DTX business, however, has been slow to develop due to technical issues. But it's now seeing a demand for applications using a version of Ikonics technology for 3D texture printing and prototyping. The technology offers larger format prints and a higher precision.

Ikonics is one of two publically traded companies based in Duluth. The other is Allete.


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Source: Duluth News-Tribune (MN)

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