Laboratory services group ALS has beaten its own profit forecast by 15 per cent thanks largely to cost cutting.
ALS, which tests minerals, food and pharmaceuticals, made an underlying net profit of $46 million in the December quarter, ahead of the $40 million profit it had expected.
The result was also well up on the $30 million and $38 million profits achieved in the preceding two quarters.
ALS shares gained 14 cents, or three per cent, to $4.84, having earlier surged as much as five per cent on the profit announcement.
Managing director Greg Kilmister said the company had boosted profit margins by reducing costs across its divisions.
"Following a renewed focus on cost control initiatives this year, it was pleasing to see the underlying operating margins for most of our business streams improve to more healthy levels," he said.
The company's geochemistry and life sciences businesses lifted revenue and profit margins for the quarter.
Its energy and industrial divisions also recorded higher profit margins though revenue was lower.
ALS has not provided guidance for its full year, which ends in March, but said it expected to continue to lift its market share across all divisions.
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