ALS shares dive after profit hit warning
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More news: ALS shares tumbled in morning trade after the laboratory testing group flagged a profit hit ahead of its half-year results.
Shares fell 7.4% to $13.85 by 11:15am AEST, having lifted more than 15% over the last 12 months.
ALS flags half-year profit hit due to volume headwinds
The news: Laboratory testing group ALS has flagged a profit hit ahead of its half-year results, following volume headwinds within its minerals division.
The numbers: ALS said that while underlying EBIT for the six months to September is expected to be "slightly ahead" of the prior corresponding period, underlying NPAT is anticipated to be down by around 5%.
The company reported underlying NPAT of $158 million for last year's first-half period.
The context: ALS said that volumes in geochemistry and metallurgy "remain patchy", with fluctuations "even more pronounced" in July and August. It noted the headwinds have been strongest in Australia and Latin America, resulting in volume declines and margin pressures in those markets.
However, ALS said North American volumes have been more stable and are holding in line with the prior corresponding period, while overall minerals margins "remain resilient" at around 30%.
Elsewhere, the Brisbane-based company flagged that organic growth in life sciences has been in line with expectations, and the integration of its recent acquisitions of Nuvisan, Wessling and York Analytical are on track.
Corporate costs are broadly in line with guidance, ALS said, while interest expense is tracking "slightly above" due to higher average debt levels and lease interest costs from recent acquisitions.
ALS is due to publish its first-half results on 19 November.
The source: ASX announcement
