Houston, Texas - Coating and spray polyurethane foam systems producer LaPolla Industries Inc. said its sales for the second quarter of 2007 increased to $9.5 million, a 26-percent increase over sales in the second quarter of 2006 and a 30 percent rise over sales of $7.3 million for Q1 2007. Gross profit rose 38 percent to $1.8 million for Q2 2007, and the group had an operating loss for Q2 of $0.6 million compared to a loss of $0.4 million for the same period last year and a loss of $1.0 million for the first quarter of 2007."LaPolla's Q2 performance begins to demonstrate the financial benefits of our vertical integration strategy with the start of operations at our new polyol blending facility mid-way through the quarter," said Douglas Kramer, chief executive officer and president, in a 21 Aug statement. Kramer said the rise in sales came primarily from higher foam sales, as LaPolla sold its spray polyurethane foam though new distribution channels. LaPolla also expects to "continue to lift gross margin through continued volume gains and improved manufacturing efficiencies," he added. The LaPolla chief pointed out that LaPolla is well positioned to continue to gain share in a market that is projected to grow by at least 30 percent over the next few years. During H2, 2007, LaPolla aims to focus on its growth strategy, "moving the company toward profitability through volume gains and improved cost efficiencies," Kramer added. By segment, Lapolla's coatings sales rose 11 percent to $5.3 million for the six months ended 30 June 2007 compared with sales in H1 2006, but the business lost $12 531 in this period, compared with a profit of $59 033 for H1 2006. The loss was "primarily attributable to cost increases for related raw materials," LaPolla said. Meanwhile, foam sales rose 39 percent to $9.8 million for H1 2007 compared to sales in H1 2006, with a segment loss of $0.8 million compared to a loss of $0.2 million in H1 2006. This higher loss was largely a result of cost increases related to resale foam purchases, LaPolla commented. LaPolla Industries produces foam and coating products aimed at commercial, industrial and residential use in the roofing and perimeter insulation construction industries. "