Some companies just never live up to their promise. One company that fits the bill is Kraton Performance Polymers (NYSE:KRA). As one of the world's leading producers of styrenic block copolymers, or SBCs, the company's products are found in toothbrush handles, diapers, power tool grips, and more. Last year almost 14% of Kraton's revenue came from products released in the last five years that are expected to be accompanied by higher margins.

You wouldn't tell by looking at the company's income statement, however. Kraton still managed to lose money for the first time since narrowly missing a profit in 2009. Shareholders wouldn't be blamed for expecting more from a company with over $1.4 billion in annual sales. Unfortunately, the polymer industry is plagued with high sales and low margins. Does that mean the company will never be comfortably profitable? contributor Maxx Chatsko analyzes the company's operations and diagnoses the situation in the following video.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and biotechnology.

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