Aug 15, 2006. /Lesprom Network/. Seguezhsky pulp-and-paper mill (Karelia Republic, Russia) reported net loss of RUR 180.1 million for the first half 2006 versus net income of RUR 271.2 million a year earlier, enterprise reported. Net sales rose by 16.5% to RUR 2.8 billion, cost price – by 27.8% to RUR 2.6 billion. Gross profit declined by 37.8% to RUR 259.7 million, profit on sales was RUR 24.1 million versus RUR 243.4 million in first half 2005, loss was RUR 206.4 million versus pre-tax profit of RUR 315.6 million in the same period in 2005. Bill payable as of July 1, 2006 was RUR 1.1 billion, bill receivable with payments during twelve months after reporting date was RUR 1.7 billion. According to company’s report, in second quarter 2006 sales revenue rose by 15% to RUR 1.5 billion. But at the same time cost of sales climbed 18%, affecting second quarter results: profit on sales in second quarter 2005 was RUR 111 million compared to RUR 77 million in 2006 and loss of RUR 94 million. The increase of total cost and, consequently, worsening of second quarter results was due to increase of cost of sales and burden.