PPG’s Performance Coatings segment sales in the second quarter 2008 increased $295 million, or 30%, versus the prior year's quarter, primarily as a result of the acquisitions of Sigma­Kalon's protective and marine coatings business and of Barloworld. The positive impact of stronger foreign currencies, increased selling prices and growth in emerging regions more than offset significant volume declines in the U.S. architectural coatings business. Seg­ment earnings improved by $12 million, or eight percent, as the earnings impact from acquisitions and favorable currency outpaced lower volumes.
Industrial Coatings segment sales for the quarter increased $209 million, or 22%, as a result of the acquisition of SigmaKalon's industrial coatings business, stronger foreign currencies and improved volumes, primarily in the automotive coatings business. The segment experienced volume declines in North America that were more than offset by higher volumes in all other regions. Segment earnings were flat. The positive impact of acquisitions, stronger foreign currencies and lower manufacturing costs were offset by inflation.
Lastly, the Architectural Coatings EMEA (Europe, Middle East and Africa) segment is a new reportable segment in 2008 and represents the largest business from the Sigma­Kalon acquisition. Segment sales for the quarter were $667 million, up a double-digit percentage in comparison to SigmaKalon's corresponding sales in 2007.