Clariant continue decline - paper business lacks direction

A familiar story at Clariant, as the first quarter results are announced - this time with an air of resignation and an acceptance of reality. It is best to spare the details, but they are available on the Clariant web site and there are many analyst reports on the web. Sales declined 19% in local currencies and 24% in Swiss francs.

The only comment regarding the paper business was 'lower demand, significantly affected by inventory devaluation'. The reality is that in Clariant's key markets:

• The OBA market has declined and, as predicted in this weblog, Clariant is becoming less competitive in the market where competent, lower cost suppliers based in China and India have made inroads.
  
• A similar story in paper dyes - Clariant is a high-cost supplier with a declining market share.
• Other segments? Clariant has had to face reality - efforts to enter the emulsion polymer market were doomed to failure from the start and rumour has it that they have now embarrasingly had to abandon their efforts. There continues to be a lack of strategy in the paper business - someone to lead the business with modicum of market knowledge would be a start.

A watershed year for Clariant ............