APPLETON — Papermaker Appleton recorded net income of $31.4 million in the third quarter on net sales of $222.3 million, compared with a net loss of slightly more than $30 million in the comparable quarter a year ago, the company reported.

A quarterly year-over-year decrease of 13 percent in net sales was attributed largely to volume shortfalls, price pressure and unfavorable product mix, the company said.

Net sales for the first nine months of the year reached $648 million, the company said.

"We delivered a solid performance for the third consecutive quarter," said Mark Richards, chairman, president and chief executive officer, in a statement. "We reduced spending and inventories, generated strong cash flow of $32 million, improved our balance sheet through $60 million of debt reduction."

Richards said the company expects to see a period of economic equilibrium where business conditions neither deteriorate nor improve significantly.

Nonetheless, the firm expects its fourth-quarter 2009 results to show significant improvement over the same period in 2008.

"The past 12 months have made us more agile and flexible," he said.

Appleton will host a conference call at 10 a.m. today. The call will be broadcast through its Web site, www.appletonideas.com/ investors.

Appleton produces carbonless, thermal and security papers plus performance packaging products.

The employee-owned company employs from 1,200 to 1,300 in the Fox Cities.