Ciba prepared employees and investors for further pain yesterday, as the Swiss specialty chemicals maker plunged into loss after sharply weaker margins and huge impairment charges.

The Basel-based group, in almost permanent restructuring in recent years, warned of cuts ahead with the potential sales of its struggling paper and publication inks activities. The moves came alongside a one- off SFr595m goodwill impairment in water and paper treatment, pushing the group into a SFr569m ($521m) net first half loss. Sales fell by 7 per cent to SFr3.09bn.