UPDATE 1-Saudi SABIC profit rises 10 pct, hit by U.S. slowdown

(Adds quotes, details, analyst and background)

By Souhail Karam

RIYADH, April 19 (Reuters) - Saudi Basic Industries Corp 2010.SE (SABIC) posted its smallest growth in quarterly profit in almost two years in the first quarter as a U.S. economic slowdown hurt demand for chemicals even as Asian demand jumped.

SABIC, the world's biggest chemicals firm by market value, made 6.92 billion riyals ($1.85 billion), or 2.31 riyals per share, in the three months ended March 31, it said in a statement on the bourse website.

That compared with 6.29 billion riyals, or an adjusted 2.10 riyals per share, in the year-earlier period.

"The company developed its business worldwide ... in spite of a rise in input prices, the economic stagnation in the United States market and in the European market to a certain degree," Chief Executive Mohamed Al-Mady said in the statement.

"The company achieved positive results helped by other markets in Asia, especially China," Mady said.

Operating profit rose 14 percent to 10.89 billion riyals after a 4 percent rise in sales, SABIC said.

Oil prices, to which chemical prices are linked, have surged above $114 a barrel this year, compared with less than $65 a barrel a year ago.