By: Tomas Ronolski - AllPennyStocks.com News

Thursday, March 10, 2016

The outlook for the construction and mining equipment industry is mixed. While construction activity in the U.S. remains solid, mining and oil & gas exploration activity has seen a sharp slow down. The sharp drop in prices of metals and oil has led to a cut in capital spending, which in turn has weakened the demand for equipment used in mining and oil & gas exploration activity. However, there is some hope for the industry. The slowdown in China has forced policymakers to consider implementing stimulus measures. Also, oil prices seem to have bottomed out and in fact could see a rebound in the coming weeks as major producers consider a production freeze.

The improving outlook for the industry augurs well for Ironclad Performance Wear Corporation (OTCQB:ICPW). Based in Farmers Branch, Texas, Ironclad is the creator of the performance work glove category. The company is a leader in high-performance task-specific work gloves and continues to leverage its leadership position in the safety, construction and industrial markets through the design, development and distribution of specialized task-specific gloves for industries such as oil & gas extraction, automotive; and police, fire, first-responder and military.

This morning, Ironclad reported its financial results for the fourth quarter and fiscal year ended December 31, 2015. For the quarter, Ironclad reported net sales of $8.42 million, down 8% on a year-over-year basis. The decline was mainly due to lower shipments made to two of the company’s largest distributors primarily selling in the oil & gas and mining industries.

Ironclad’s gross profit for the quarter was $2.82 million, compared to $3.19 million reported for the same period in the previous year. Net income for the fourth quarter of 2015 came in at $0.24 million, or breakeven on a per share basis, compared to $2.11 million, or $0.03 per share reported for the same period in the previous year.

For the full year, Ironclad had net sales of $23.6 million, down 2.9% on a year-over-year basis. The company registered a net loss of $231,315 for fiscal year 2015, compared to net income of $934,319 reported in 2014. On a per share basis, the company broke even in 2015, compared to a profit of $0.01 per share in 2014.

Jeff Cordes, CEO at Ironclad Performance Wear, said that the fourth-quarter results were disappointing considering that the company had built momentum in the prior two quarters. Shares are off over 14% on the news, however are still in a 52 week trading range between $0.23 and $0.30.

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