Mar 05, 2008. /Lesprom.com/. Chesapeake Corporation reported financial results for the 4Q and full year of 2007. Net sales of $270.3 million were up 5% when compared to the 4Q 2006, but were down 4% excluding the effect of changes in foreign currency exchange rates. Full year net sales of $1.1 billion were up 6% when compared to 2006, but were down 1% excluding the effect of changes in foreign currency exchange rates. "2007 was a challenging year for Chesapeake, but it was also a year when much was accomplished," said Andrew J. Kohut, Chesapeake's president and CEO. "By the end of the year we resolved some service issues in our paperboard segment. As a result of this improved service, coupled with a renewed emphasis on customers, we have secured significant new business as we head into 2008. We have also made solid progress on our refinancing. Because of these achievements and the more recession-resilient end-use markets we focus on, I expect that 2008 will be better than 2007. However, we expect the first half of the year to be lower than 2007 with the improvement to occur in the last half of the year." Paperboard packaging net sales for the 4Q 2007 were down 6%, or $13.1 million, compared to the same period in 2006. Net sales for the full year 2007 were down 3%, or $26.9 million, compared to full year 2006. The decline in net sales for the 4Q and full year was due to lower sales of both pharmaceutical and branded products packaging. The sales decline in branded products packaging was primarily due to decreased sales of tobacco packaging resulting from the loss of substantial business with British American Tobacco, partially offset by increased sales of German confectionery packaging. The decline in pharmaceutical and healthcare packaging was primarily a result of competitive market conditions and some service level disruption. Operating income for the 4Q 2007 decreased 74%, or $7.9 million, compared to the same period in 2006. Operating income for the full year 2007 decreased 22%, or $9.3 million, compared to the full year 2006. The decrease in operating income for the 4Q and full year was largely due to the decreased sales of tobacco packaging and start-up problems with a new line of multi-shaped tubes for alcoholic drinks packaging. The remaining decline in operating income was primarily due to costs associated with recent process improvement initiatives and reduced sales and operating margins in pharmaceutical and healthcare packaging. Chesapeake Corporation protects and promotes the world's great brands as a leading international supplier of value-added specialty paperboard and plastic packaging.