By Pooja Menon

(Reuters) -LyondellBasell on Friday missed Wall Street expectations for quarterly profit, due to maintenance downtime and lower volumes in its largest segment supplying raw materials to the automotive, construction and electronics industries.

Chemical companies have been struggling due to slumping demand and rising raw material costs, especially in Europe. A rigorous regulatory landscape in the region is also compelling businesses to reassess their approach within the region.

To navigate continued macroeconomic volatility, LyondellBasell unveiled an initiative aimed at increasing earnings by $500 million.

The company said on an earnings call that it has cut costs by about $300 million through portfolio management actions such as refining business exits and an ongoing strategic review of its European operations.

LyondellBasell added it would provide updates on five European assets, which are still under review, by mid-year.

On Thursday, Eastman Chemical also announced cost-cutting measures in response to market volatility, partly influenced by renewed trade concerns stemming from President Donald Trump's tariff policies.

Business activity in the euro zone barely grew in February, as a small boost in services barely offset ongoing manufacturing decline.

LyondellBasell's largest segment by sales volume, the olefins & polyolefins-Americas unit, reported adjusted core earnings of $251 million, down from $521 million last year, as higher feedstock costs pressured margins.

Adjusted core profit in its intermediates & derivatives segment, which makes oxyfuels and intermediate chemicals, fell 69.9% to $94 million from the year-ago period.

The company expects seasonal demand improvements across most businesses in the second quarter.

On an adjusted basis, the company posted a quarterly profit of 33 cents per share, missing analysts' estimate of 43 cents, according to data compiled by LSEG.

(Reporting by Pooja Menon in Bengaluru; Editing by Vijay Kishore and Shailesh Kuber)

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