Celanese beats quarterly profit estimates as demand picks up

(Reuters) - Chemicals maker Celanese beat first-quarter profit estimates on Wednesday, helped by a steady rise in demand for its products amid persistent destocking trends.

Destocking, a process by which companies offload excess inventory, had plagued chemicals companies amid soft demand. This trend, however, is expected to slow down this year as demand picks up in key regions such as the U.S., Europe and China.

The company said volumes increased by 5% "sequentially" due to a "modest increase in Asia demand and seasonal recovery in the Americas and Europe", and pricing rose by 1%.

"We saw the realization of financial benefits from actions that were completed last year, particularly within the former M&M portfolio," CEO Lori Ryerkerk said.

The Dallas-based company also initiated its second-quarter profit per share guidance between $2.60 and $3.00. Analysts, on an average, were expecting profit to be $2.92 per share in the same period.

The company reported adjusted profit of $2.08 per share for the three months ended March 31, compared to analysts' estimate of $1.91, according to LSEG data.

(Reporting by Tanay Dhumal in Bengaluru; Editing by Mohammed Safi Shamsi)

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