Aug 16, 2007. /Lesprom Network/. Appleton reported on August 15, 2007 a net loss of $1.7 million for the second quarter of 2007 compared to net income of $1.2 million for the second quarter of 2006. Appleton's adjusted earnings, which excludes restructuring charges and certain non-recurring or infrequent and unusual income or expenses as applicable, decreased $1.0 million to $1.9 million for second quarter 2007 compared to $2.9 million adjusted earnings for second quarter 2006. Appleton's net sales for the second quarter ended July 1, 2007, decreased 1.4% to $265.3 million compared to net sales of $269.0 million for the same quarter of 2006. Second quarter 2007 net sales were impacted by overall lower domestic shipment volumes which offset improved pricing and volume gains in international markets. Appleton's gross profit decline of 12.8% in the second quarter was the result of lower volumes, unfavorable product mix and higher raw material costs which offset improved pricing and manufacturing productivity improvements compared to the prior year period. The reduction in selling, general and administrative expenses resulted from previously announced restructuring activities and other cost reductions. Appleton's net loss for the first six months of 2007 was $1.8 million compared to $6.8 million of net income reported for the same period in 2006. Appleton's 2007 year to date adjusted earnings decreased $5.0 million to $3.7 million for 2007 compared to $8.7 million adjusted earnings for the 2006 year to date period. For the first six months of 2007, net sales decreased 3.2% to $520.5 million, compared to $537.9 million in the first half of 2006. Results for the first six months of 2007 primarily reflected lower sales volumes, unfavorable mix and higher raw material costs which offset improved pricing, manufacturing productivity improvements and reduced selling, general and administrative expenses compared to the prior year period. Appleton produces carbonless, thermal, security and performance packaging products. Appleton is headquartered in Appleton, Wisconsin, and has manufacturing operations in Wisconsin, Ohio, Pennsylvania, Massachusetts and the United Kingdom, employs approximately 3,100 people and is 100 percent employee owned.