“In the second quarter, PPG delivered the highest quarterly earnings per share in company history as a result of continued execution, strong cost discipline and effective cash deployment,” said Charles E. Bunch, PPG Chairman and CEO. “These record earnings were achieved despite significantly weaker European and Latin American currency exchange rates and growth that varied by region and end-use market.”

Performance Coatings segment sales for the quarter were $1.2 billion, up 1 percent versus the prior year. The negative impact of foreign currency translation was offset by higher selling prices. The aerospace business delivered strong growth in all regions, and U.S. architectural coatings sales were seasonally stronger than the first quarter and improved by mid-single-digit percentages over a difficult prior-year comparison period that included channel stocking for the new OLYMPIC(R) ONE product. Protective and marine coatings volumes were muted, with gains in protective coatings offset by lower marine demand. Automotive refinish volumes declined due to lower European demand and customer destocking. Segment earnings for the quarter of $204 million were level with the prior-year period.

Industrial Coatings segment sales for the quarter were $1.1 billion, an increase of $24 million, or 2 percent, versus the prior year. Segment volumes grew by more than 20 percent in the United States, including strong automotive OEM coatings business performance. Growth in emerging regions continued but was mixed by end-use market, including in Asia where strong automotive OEM coatings results outpaced lower demand in construction-related markets.  European volumes declined by about 10 percent. Sales growth was tempered by the negative impact of foreign currency translation, which reduced sales by nearly $60 million. Selling prices improved in response to higher input cost inflation. Segment earnings for the quarter were $143 million, an increase of $28 million from the prior year. Earnings were aided by the higher volumes and continued cost discipline.

Architectural Coatings – EMEA (Europe, Middle East and Africa) segment sales for the quarter of $601 million decreased $10 million, or 2 percent, versus the prior year due to lower volumes partly offset by price. Currency translation negatively impacted sales by 10 percent but was offset by sales from the Dyrup acquisition completed in January 2012. Despite mid-single-digit segment volume declines, segment earnings grew by $14 million versus the prior year’s second quarter to reach $64 million, aided by acquisition performance and continued cost-management actions. The prior year included higher costs relating to a large customer bankruptcy, and that year-over-year benefit was negated by the negative impact of foreign currency translation.

Optical and Specialty Materials second quarter 2012 segment sales of $314 million were down $12 million, or 4 percent, versus the prior year due to the negative impact of foreign currency translation. Segment volumes were flat and included negative impacts from weakened European market conditions and optical customer inventory management. Segment earnings grew $5 million year-over-year to $95 million, aided by cost management.

Commodity Chemicals segment sales for the quarter of $427 million were down $43 million, or 9 percent, versus the prior year. Selling prices were lower year-over-year and modestly lower than the first quarter 2012. Chlorine demand weakened during the quarter, and volumes were also slightly lower year-over-year. Lower natural gas input costs and cost management offset the sales declines. Segment earnings were $106 million, level with the second quarter 2011.

Glass segment sales were $273 million for the quarter, down $1 million from the prior year. Higher flat glass volumes were offset by lower pricing and the negative impact of foreign currency translation. Fiber glass pricing declined from prior-year levels, driven by reduced European and Asian demand. Segment earnings were $23 million, a decrease of $6 million from the prior-year quarter as a result of lower pricing and lower fiber glass equity earnings.