Clariant chemicals will cut more jobs

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Swiss chemicals group Clariant said on Thursday that it is to cut more jobs into 2010.

Zurich -- Swiss chemicals group Clariant said on Thursday that it is to cut more jobs into 2010 after posting a second-quarter loss of CHF 61 million (EUR 40 million, USD 56.5 million).

Clariant, which made a net profit of CHF 51 million in the second quarter of 2008, has already announced a total of 1,850 job losses in 2009.

"Further reductions in 2009 and 2010 will follow in line with the company’s goal to close the performance gap to its peers and to adjust the company’s structure to the global recession," Clariant said in a statement.

Second-quarter sales fell by 24 percent to CHF 1.61 billion.

"Our focus on generating cash, decreasing costs and reducing complexity has shown results, both in terms of cash flow that remained strong and operating income," said chief executive Hariolf Kottmann.

"However, we are still challenged by unprecedented low demand and don’t expect a quick recovery," he added.

Total first-half losses in 2009 reached CHF 152 million against a net profit of CHF 92 million during the equivalent period in 2008.

Sales were expected to remain weak, leading to a 16 to 20 percent drop for the full year.

The Swiss group, which has undergone repeated restructuring in recent years, employs about 20,000 people worldwide, according to its website.

AFP / Expatica

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