May 7 (Reuters) - Arcadium Lithium ( ARLTF ), formed

earlier this year with the merger of U.S. lithium miner Livent

and Australia's Allkem, posted a drop in first-quarter profit on

Tuesday due to a decline in prices for the metal used to make

electric vehicle batteries, although results beat Wall Street's

expectations on cost cuts.

Global supplies for lithium outpaced demand during 2023 and

fueled a glut that has dragged on prices, hurting Arcadium and

other producers. However, the industry has stayed bullish on

long-term demand for the battery material due to the global

electrification trend.

Arcadium posted net income of $15.6 million, or 1 cent per

share, for the three months ended March 31, down from $114.8

million, or 23 cents per share, last year. The results were

consolidated between the two combined companies.

Excluding one-time items, Arcadium earned 6 cents per share

during the quarter. By that measure, analysts expected earnings

of 4 cents per share, according to IBES data from LSEG.

The results were helped in part by cost cuts, including

Arcadium laying off about 11% of its staff during the quarter.

Shares of the Philadelphia-based company closed Tuesday at

$4.74 and were unchanged in after-hours trading.

Arcadium's biggest rival and the world's largest producer of

lithium, Albemarle, said last week that higher electric

vehicle (EV) sales in China in April, including at major

automaker BYD, is a positive sign for lithium

prices, but cautioned that current pricing would limit new

projects from getting off the ground.

"We see encouraging signs in the lithium market and

underlying demand fundamentals remain very strong," Arcadium CEO

Paul Graves said in a statement.

The company achieved average realized pricing of over

$20,000 per product metric ton for its combined hydroxide and

carbonate volumes in the first-quarter.