PITTSBURGH -- PPG Industries has reported record sales for the second quarter – also reporting the highest quarterly sales in the company’s history. Sales for the second quarter were $3.2 billion, surpassing the record performance set just last quarter. Year over year, second quarter sales were up 12 percent. Second quarter net income was $249 million, or $1.50 per share. Net income includes an aftertax charge of $6 million, or 3 cents a share, to reflect the net increase in the current value of the company’s obligation under its proposed asbestos settlement agreement reported in May 2002, which is subject to pending court proceedings. The company’s tax rate for the quarter was 31.3 percent.

That compares with second quarter 2006 net income of $280 million, or $1.68 a share, which included aftertax earnings of $12 million, or 7 cents a share, for net legal and insurance matters and an aftertax charge of $4 million, or 3 cents a share, to reflect the net increase in the value of the company’s obligation under its asbestos settlement agreement. Sales were $2.8 billion. The company’s second quarter 2006 tax rate was 26.4 percent.

For the first six months of 2007, PPG recorded net income of $443 million, or $2.67 a share, which includes aftertax charges of $11 million, or 6 cents a share, to reflect the net increase in the value of the company’s obligation under its asbestos settlement agreement. Sales for the first half of 2007 were $6.1 billion. The company’s first half 2007 tax rate was 28.4 percent.

For the first six months of 2006, PPG recorded net income of $464 million, or $2.79 a share, which included aftertax earnings of $12 million, or 7 cents a share, for net legal and insurance matters and aftertax charges of $23 million, or 14 cents a share, for business restructuring and $10 million, or 6 cents a share, to reflect the net increase in the value of the company’s obligation under its asbestos settlement agreement. Sales for the first half of 2006 were $5.5 billion. The company’s first half 2006 tax rate was 25.7 percent.

“PPG’s excellent performance this quarter is a result of our strongest organic volume growth in three years,” said Charles Bunch, PPG chairman and chief executive officer. “This has been driven by our well-balanced geographic footprint and ongoing market penetration in both of our coatings segments and our Optical and Specialty Materials segment. Also supplementing our organic results is our continuing success in integrating last year’s acquisitions, which not only are aiding our sales growth but also delivered double-digit operating margins this quarter.

“Our record-setting overall performance was achieved despite transitory operating issues in our commodity chemicals business that hindered our ability to sell into a strong chlor-alkali market,” Bunch continued. “We also did well despite difficult conditions in several other North American end-use markets.

“Looking ahead, we anticipate generally similar economic conditions in most markets and geographic regions,” he said. “We have produced strong financial results in both the second quarter and year-to-date under these conditions, and we expect to continue to do so the rest of the year. As has been our long-standing tradition, we will execute our strategies with a focus on delivering superior value to both customers and shareholders.”

Bunch noted that the company is progressing on its business portfolio transformation and expects to have tangible results within the next few months.

For more information about PPG, visit: http://www.ppg.com.