Duluth-based Ikonics saw a big boost in its aerospace business last year but still reported a $65,061 loss for 2016.
"Unfortunately, we were hit with a large unforeseen increase in health care expenses in the fourth quarter of 2016," CEO Bill Ulland said in a statement Monday. "For the year, our employee health care costs were $721,000 compared to $408,000 in 2015."
The loss equates to $0.03 per diluted share.
The company's aviation-centric Advanced Material Solutions business saw a 66 percent increase over 2015 sales, and the company sees potential to continue that growth this year and next.
"Most of these sales were to one customer, and we expect that this business will continue for future years," Ulland said. "We are anticipating additional business from three potential new customers in 2017 and 2018."
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A new expansion dedicated to the aerospace segment opened in Morgan Park last fall.
Ikonics' sales were flat between 2015 and 2016, ending last year at $17.5 million. The company reported a $225,007 profit in 2015.
Ikonics shares fell $0.24 to $10.25 after Monday's trading. The stock has been as high as $13.95 and as low as $9.50 in the past 52 weeks.
