Ciba Moves To Reshape Portfolio

Spurred by what CEO Brendan Cummins terms "unquestionably disappointing" first-half results, Ciba plans to reshape its portfolio of specialties businesses to focus on the plastics, coatings, and water-treatment businesses. Over the next few months, the company will evaluate "a number of options" for its paper and publication inks businesses and will decide on what to do with these operations. Ciba took a write-down of roughly $542 million for its Water & Paper Treatment segment, resulting in a net loss for the second quarter. Regarding its Plastics Additives division, Ciba is in the process of agreeing to a joint venture in the Middle East. It plans to make acquisitions in the next few weeks that will strengthen the coating effects business.