Aug 06, 2012. /Lesprom Network/. Appleton's 2Q 2012 net sales of $213.9 million decreased 1.2% compared to 2Q 2011 net sales. However, the Appleton's strong revenue growth continued in the thermal papers segment where an 8.6% increase in net sales nearly offset the sales decreases in carbonless papers and Encapsys, as the company said in the press release received by Lesprom Network. Excluding one-time items, 2Q 2012 adjusted operating income was $16.9 million, $6.3 million higher than adjusted operating income reported for 2Q 2011. Appleton reported a 2Q 2012 operating loss of $32.5 million compared to operating income of $10.7 million during 2Q 2011. The operating loss for 2Q 2012 was largely the result of $42.9 million of costs related to ceasing papermaking operations at the West Carrollton, Ohio, mill and transitioning to base paper produced by Domtar as part of the 15-year supply agreement announced in February. Appleton also recorded $6.5 million of transaction costs associated with the proposed business combination between Appleton and Hicks Acquisition Company II. On July 13, the two companies announced they had agreed to discontinue the proposed business combination. Appleton's net sales for the first six months of 2012 were $433.5 million, slightly lower than first half 2011 net sales of $434.6 million. Appleton reported an operating loss of $82.3 million for the first six months of 2012 compared to operating income of $21 million for the same period last year. Excluding one-time items, current year adjusted operating income was $29.7 million, $5.6 million higher than adjusted operating income reported for the first half of 2011. On a year-to-date basis, costs related to ceasing papermaking operations at West Carrollton and transitioning to Domtar base paper were $105.1 million. First half 2012 results also included $6.9 million of transaction costs discussed above. First half 2011 operating income included a $3.1 million charge for a litigation settlement. During the 3Q 2012, Appleton expects continued strong growth from its thermal papers segment. Appleton's decision to discontinue selling carbonless into certain non-strategic international markets will likely account for most of the carbonless volume decline the Company anticipates during the remainder of 2012. The Company expects slightly improved sales for its Encapsys business during the second half of 2012, compared to second half 2011, based on improved market conditions for its customers and advancements in product development efforts. Appleton produces thermal, carbonless and security papers and Encapsys products. Appleton, headquartered in Appleton, Wisconsin, has manufacturing operations in Wisconsin, Ohio and Pennsylvania, employs approximately 1,600 people and is 100% employee-owned.