(Reuters) -Specialty chemicals maker Celanese beat analysts' estimates for first-quarter profit on Monday, as cost-cutting measures helped offset lower sales, and announced plans to spin off its electronics segment.

Shares of the company were up 5.1% at $47.07 in extended trading.

The chemical industry has been taking cost-cutting measures as it has been struggling with higher energy costs as well as weak demand and prices, especially in European markets.

Last month, peer Eastman Chemical said it would curtail expenses in response to market volatility.

The chemical firm's quarterly selling, general and administrative expenses were down about 13.2% to $230 million from a year earlier.

In the first quarter, Celanese raised its current-year cost reduction targets by about $40 million to $120 million.

Separately, the chemical maker also said it plans to spin off its electronics segment, Micromax, a supplier of electronic inks and pastes designed for high-performance electronics, as the company looks to generate cash and cut debt.

The materials from the Micromax segment are used in applications, including navigation and defense, medical monitoring and advanced circuit board components.

The chemical firm added that the segment is expected to generate revenue of over $300 million in 2025.

With an already struggling sector, Trump's erratic trade policy has further added to uncertainty for the chemical industry.

However, Celanese said that, on the back of its mitigation efforts, it does not anticipate direct tariff impact in the second quarter but flagged that the potential repercussions of duties on demand make it difficult to predict earnings for the full year.

Last month, peer Dow said it expects extended pressure on earnings owing to tariff uncertainty.

The Irving, Texas-based company posted an adjusted profit of 57 cents per share during the January-March quarter, compared with analysts' average estimate of 38 cents per share, according to data compiled by LSEG.

(Reporting by Tanay Dhumal and Pooja Menon in Bengaluru; Editing by Alan Barona)