Vince Morales - VP, IR Chuck Bunch - Chairman & CEO Bob Dellinger - SVP, Finance & CFO

Frank Mitsch - BB&T Capital Markets Kevin McCarthy - Banc of America John McNulty - Credit Suisse Sergey Vasnetsov - Barclays Capital John Roberts - Buckingham Research David Begleiter - Deutsche Bank P. J. Juvekar - Citigroup Dmitry Silversteyn - Longbow Research

Hello, this is Vince Morales, Vice President of Investor Relations for PPG industries. Welcome to PPG’s second quarter 2010 financial teleconference. Joining me on the call today from PPG is Chuck Bunch, Chairman of the Board and Chief Executive Officer; Bob Dellinger, Senior Vice President, Finance and Chief Financial Officer; and Dave Navikas, Vice President and Controller. Our comments relate to the financial information released on Thursday, July 15, 2010. Visual supporting this briefing may be accessed through the Investor Center on the PPG website at ppg.com. As noted on slide number two, our prepared remarks and comments made in the subsequent question-and-answer session may contain forward-looking statements reflecting the company’s current view about future events and their potential effect on PPG’s operating and financial performance. These statements involve risks and uncertainties that could effect the company’s operations and financial results, and as discussed in PPG industry’s filings with the SEC, may cause actual results to differ from such forward-looking statements. The company is under no obligation to provide subsequent updates on these forward-looking statements. This presentation also contains certain non-GAAP financial measures. Pursuant to the requirements of Regulation G, the company has provided in the appendix of the presentation material, reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The agenda for today’s discussion is noted on slide number three. And now, let me introduce PPG’s Chairman and CEO, Chuck Bunch, who will provide the opening remarks.

Thank you Vince and welcome everyone. This afternoon, I will provide a brief overview of our second quarter performance. Bob Dellinger will review details of our financial results. I will make a few closing remarks and then we will take questions. PPG’s strong results this quarter benefited largely from a 10% increase in volumes. The breadth of geographies and end use markets that we serve is enabling us to leverage continuing positive momentum in global industrial demand. The performance of our portfolio is being elevated by higher industrial activity and strong demand across Asia/Pacific and Latin America which is more than offsetting weak construction in North America and Europe. Our performance and growth occurred consistently through the quarter and all of the major regions contributed. Our earnings per share were close to 2008 pre-recession levels as we leveraged the volume growth with our now lower cost structure. Our earnings this quarter were aided by an improved sales mix in some of our top performing businesses such as Aerospace, Auto Refinish and our Optical and Specialty Materials segment. As a matter of fact, both Optical and Specialty Materials and performance coating segments posted record earnings results. Our Optical segment posted sales growth rates approaching 20%, and it remained our top operating margin segment. Performance Coatings delivered record earnings as margins grew by over 200 basis points. Our auto refinish, aerospace and protective and marine coatings businesses, all delivered increased sales which more than offset the impact of lower volumes in our US Architectural Coatings business. Our Industrial Coatings segment continued to approach historical earnings levels. In the second quarter, the segment delivered 12% operating margins for the first time since 2006. Segment volume growth was more than 25% versus a recession-weakened prior year period. We achieved 40% growth in our automotive…

Thank you, Chuck. I will begin by reviewing the year-over-year bridge of our second quarter sales which is detailed in the accompanying slide pack on slide number four. Sales improved about $340 million or 11% versus the second quarter of 2009, which was negatively impacted by the global recession. Overall pricing improved modestly, by about $20 million. Higher prices in our coatings segment offset lower pricing in the glass businesses and more specifically in our performance glazing business, which remained impacted by weak US construction markets. Year-over-year pricing was also lower in commodity chemicals, however pricing levels in commodity chemicals this quarter have moved higher versus the first quarter of 2010. Compared to last year, currency conversion reduced sales by $9 million as the impact of a much weaker Europe was nearly offset by stronger currencies in Asia, Latin America and Canada. As Chuck mentioned, we realized a strong increase in volumes. This improvement of more than $300 million was driven by higher global industrial activity in all regions of the world. Weaker construction markets in the mature regions of Europe and North America attracted somewhat from our volume growth. As illustrated on the graphs, our year-over-year volume comparisons this quarter were similar to the first quarter despite a more difficult comparison period in 2009. As detailed on the lower right chart in comparison with 2008 pre-recession levels, we remained down more than 10%, also comparable to the first quarter. Further details on our sales are contained on the next slide. As you can see the emerging regions of Asia/Pacific and Latin America are continuing to grow faster than the developed regions of the world. Asia/Pacific continues to be a considerable growth platform for the company but primarily by our industrial businesses serving both exports from the region and local…

Thanks Bob, I will conclude by reiterating a few key items. Our global geographic footprint and a broad set of end-used markets that we serve are continuing to yield benefits. This was clearly in evidenced this past quarter as we leveraged the moderate global industrial recovery. Our results were aided by growth in emerging regions and an improved sales mix resulting from stronger results in our top performing business, including Optical and Specialty Materials, Aerospace and Auto Refinish. Our commodity chemical segment rapidly returned to solid profitability and our glass business delivered mid-single digit margins on strong fiber glass demand. As with the first quarter, we continue to experience solid earnings leverage on higher sales volumes, reflecting the benefits of the structural cost reductions we completed during the recession. Let me conclude by commenting that I am encouraged with our earnings recovery and that I believe we remain well positioned to capitalize on what we anticipate to be a continued gradual global economic recovery. Also, we are beginning to utilize our strong balance sheet to accelerate growth. We are currently reviewing several small to mid-sized acquisitions in the $20 million to $250 million range and intend to remain active on share repurchases. That concludes our prepared remarks. Now operator, would you please give instructions and open the phone lines for questions.

(Operator Instructions) Our first question comes from the line of Frank Mitsch from BB&T Capital Markets. Frank Mitsch - BB&T Capital Markets: You’d hardly know that there’s concerns about the economy out there. I mean it’s the best result in several years at a minimum in the second quarter. We've been hearing a little bit about on the paints and coatings side that the raw materials have become tighter. I think you alluded a little bit about how the price inflation of raws has outpaced your selling prices. Can you talk about the availability of raws, is that hampering? Are your volumes to any extent and I know that I think Bob mentioned that you've got some selective price initiatives underway in that sector, would you anticipate that that would fully offset by year’s end, the raw material inflation that you have seen so far in that sector?

I would say that we had a few spot shortages during the second quarter. There were a couple of suppliers that had unexpected outages or production problems. It probably shifted some business around for us, but we don’t think we lost any orders on an ongoing basis and if anything probably a little of the activity would shift into the third quarter. So, availability is not a major concern for us right now and pricing has stabilized in the markets for our principle raw materials, so some of the feedstock costs as we've talked previously in propylene or ethylene are actually drifting down. So, at this point we don’t see supply issues and we think that raw material pricing is stabilized, albeit at a higher level than we saw at the beginning of the year. Frank Mitsch - BB&T Capital Markets: All right, terrific and obviously nice job by Mr. McGarry and his team. Can you comment a little bit about the pricing that you've realized, the $80 in the second quarter, I guess you've got 35 to 50 on tap in caustic for the third quarter, chlorine $50 on the table for the third quarter. What is the status of those increases as well as and I guess, I think you indicated it was going to be marginally higher, how does that interplay workout as we look at the third quarter?

Well if I stick with your first part of your question, Frank, the pricing environment in core alkali is firm, we have now been implementing the $80 that was announced in the second quarter, the industry didn’t get all of that at once, it was phased in over the second quarter and now with the $35 increase announced in July, we think that this will be implemented on a customer basis probably taking into consideration at what phase they were in contracts. So right now we do not anticipate any significant problems in implementing the second or this smaller third quarter increase, volumes have stayed up on the caustic soda side, inventories are low and we feel confident about the pricing environment for caustic soda. There has been a price increase initiative in Europe, stable pricing in Asia, so on a global basis, we think that we have a solid pricing environment for caustic soda. On chlorine, there was a $50 announcement here in the third quarter that we expect to be phased in over the course of the quarter depending on contracts. There is a little more resistance with the PVC customers, but the other merchant chlorine customers are receiving price increases. So here too we feel that the pricing environment for chlorine is stable to firm. Frank Mitsch - BB&T Capital Markets: Chuck, if I could read into your tone, it doesn’t seem to me like you are a man troubled by the possibility of a double dip coming up, is that fair?

If you recall, what we’ve been through over the last couple of years in the chlor-alkali business, Frank. In our description of our results here for the second quarter and it's probably been a trend for a little longer, the industrial activity has been quite good, strong, restarting from recession levels, but the construction markets especially in the developed regions have been weak. We had these same economic conditions here in North America, weak construction markets, therefore weak PVC production; that strengthens the opportunity for firm pricing in caustic soda. So, we have shown in 2007-2008 that strong industrial activity while we have weak construction activity actually helps the merchant players like PPG, and it strengthens the pricing environment for caustic soda. So at this point even if we continue this economic environment that we saw in the second quarter, we feel quite optimistic that we’re out of the trough for the chlor-alkali business and then we should continue to build all the momentum that you saw after lunch here in the second quarter.

Our next question comes from the line of Kevin McCarthy from Banc of America

Would you elaborate on the relative strength that you saw in auto OEM versus the industry, is that a function of geographic mix in North America and Asia or did you perhaps gain share or maybe you are aligned with the right brand owners at this point?

Kevin, this is Chuck. I would say that what we have seen is a good customer mix on part of our PPG customer portfolio on automotive OEM. I would say one of the biggest upsides for us though has been our position in China. We are the number one automotive OEM coating supplier in China. We have a broad-based customer array including the global players like General Motors or Volkswagen and also a very good position with the domestic and regional producers. So I would say we had some gain from there. We are also very well aligned with the German producers now. That hasn't always been the case for PPG but if you look at our position with the BMW or Mercedes, the German automotive producers have been the strongest in Western Europe. We are well aligned there. We are also seeing good growth in Russia where we have a nice position. General motors and other customers here in North America, I think we are well positioned, but I would say the single biggest factor in our volume gains are coming from our position in China.

With regard to fiber glass, I think you mentioned you are operating near 100% capacity at this point. Is the demand strength there being driven more by electronics or by reinforced plastics there? And then given the notion that you are nearly sold out, what does the future look like? In other words, should we anticipate greater pricing power or possible expansions required at some point?

On the two markets for fiber glass, both of them are running equally well. So if you take our reinforcements business which is primarily supplied for PPG here in North America and in Western Europe, we are operating at a sold out capacity basis. We are implementing price increases for four reinforced products and we have almost full capacity utilization. We have one idle furnace that we are attempting to bring on here in the second half of the year. So we are sold out in the West and implementing price increases. Again, a lot of this is driven by the capacity reductions by ourselves and many of our competitors during the recession and we think the environment is very solid for the coming years now because of some of these capacity rationalizations. On the electronics side, which is, we participate through a large joint venture that we have with Nan Ya Plastics in Taiwan, in China; that business is booming and we are running at capacity, there have been a number of significant price increases, and both sides of the business or end-used markets, reinforcements and electronics are driving both the volume and profitability improvements that we see in that business Union and it's reflected overall in this segment. So we feel pretty good about fiber glass right now.

And our next question comes from the line of John McNulty.

Just two quick questions. You think the economy and the industrial economy in particular is going to gradually keep improving, are there any areas where you saw any incremental weakness as you went through the quarter?

Incremental weakness as we went through the quarter? I would say no. If you look at you know geographically, probably the industrial economy that’s still growing but at a slightly slower rate would be Europe. We are seeing even automotive OEM production. We are forecasting a modest volume improvement in the second half. This would be 5% or below. The rest of our industrial activity we think will be up in the second half in Europe, but certainly not as strong as what we are seeing in Asia, Latin America or even the North American markets. So right now as we went through the second quarter, we pre-announced guidance in the middle of June and we expected I think at that time to make the middle to higher end of the range but actually the second half of June finished strongly, and a couple of businesses notably chlor-alkali continued to accelerate through the rest of the month. We didn’t see any fall off in sales or orders in key markets in Asia or North America. So through the second quarter and now here starting in the third quarter, we have not seen an inflection point, certainly not down, and the continuation of the current trends that we’ve talked about in these announcements.

Thanks for the color on that. And then with regard to your architectural business, you had indicated the DIY market was stronger than it sounds like the stores business or contractor business that you do, was it positive and stores negative or were they both negative and it was just a degree of one being worse than the other?

They were both negative for us in the second quarter, DIY, a little less so than the stores or contractor business. Not appreciably different, although obviously, when we go through retailers or independent dealers, those aren’t direct sales. Sometimes we will move inventory into their locations and depending on when they move out from the warehouses or get on the shelves, we don’t always see as regular an order pattern as we would in the stores. So it wasn’t an appreciable difference, but weak volume in both places, less so though in DIY.

Our next question comes from the line of Sergey Vasnetsov from Barclays Capital.

Chuck, if you compare your volume recovery, specifically in your performance and industrial coatings businesses, maybe by large segments and by region versus the underlying market, where would you say that you gained some market share? It sounds like it was a case in automotive OEM, is it true? And also which other segments or geographies if that’s the case?

Well, I would say after automotive OEM our view, although again this is a business that goes through a two step distribution. Automotive Refinish had a very nice quarter. We think we are gaining share there and that is a global business for us, so we are well positioned in the fast growing regions like China, but we think we are gaining share in that business. Aerospace, we had a modest volume improvement there. We are gaining share although our shares in that business unit are already quite high. And the other businesses we feel that we had more than held our own, although I can't say at this point we don’t have enough market data from the second quarter. The other businesses such as our General Industrial business, our Protective & Marine Coatings business, these would be businesses that we felt we didn’t see any appreciable share loss and it could turn out when we get all the data that these could be either stable to actual market share gains, but certainly Automotive OEM, Automotive Refinish, Aerospace would be coatings businesses where we were gaining share.

And so when you think about the sources of that share gains, is it your low cost base so you can compete more effectively, did you bring some new technology that you didn’t have and other people didn’t have for the past couple of years, or what is it that allowed you to gain some share?

I would say the principle reason for gaining share in these markets is technology and global position. So if you take automotive OEM, we are very well positioned, globally. We have worked hard to establish ourselves in markets like China, not only with the global players, but with the domestic players. We have a full product array to meet all of their needs. There is a move in automotive OEM to what we would call a shorter or a compact processes where we can deliver cost savings but provide the same corrosion and decorative protection. So I would say that clearly it’s global position in technology in automotive OEM. In Refinish, we feel that we have the best waterborne or water-based refinish system out there that’s helping us to gain share, especially in markets or regions where they are going from a solvent-based to water-based mandated system. So we think we are well positioned there and we have always been not only the market leader, but the technology leader in our aerospace products. So I think in all three of these, it would be global position, but technology. We have a better cost base certainly in these businesses after our restructuring and I think you see the effects of that, but certainly we’re not trying to win any business by just pursuing a lower price strategy.

And our next question comes from the line of John Roberts from Buckingham Research.

Hi. I was a little surprised that DIY North American volumes were down. You have easy comps there, there’s not a lot of commercial exposure. I thought there was some negative weather in the March quarter that might have benefited the June quarter and you had the housing stimulus that sort of drove turnover very high during the quarter.

Well, I think if you look at the DIY segment, I haven’t seen the big box retailers comps yet. But if you remember, our first quarter numbers were very weak in January and February; then we had a very strong surge in March that I think that showed some strength for us in the first quarter. We also had some weather certainly in the second quarter, I don’t know across the country but certainly here in the North East June was a very wet and rainy month. So, I would say that it’s a little early for us to see all of the market data out there but certainly we don’t see the same momentum on either the DIY or our company owned stores side although we are working hard at it, taking cost out but there is just not as much market strength as we would have hoped.

Secondly, on slide number four where you show the sales volume index, could you just provide may be some of the outliers, so optical is probably at a new high, fiber glass sounds like it’s at a new high, and then you have some things that must be down still 20% from the 2008 level like commercial construction coatings or others. Maybe most things are probably near the average but where are the outliers?

Well, I would say that the weakest business that we had would be in our glass operating or reporting segment and that would be not the fiber glass business which drove a lot of the improvement but it would be that performance glazings business and that is primarily a North American commercial construction and North American residential construction play. So that was probably the weakest business out there from a volume standpoint for PBG. The other two businesses that were weaker from a volume standpoint, we've talked about architectural EMEA down about 5% and the North American architectural business is similarly down. So, I would say of the businesses in our portfolio, those would be the three and coincidentally they are all construction related here in the developed economies in North America and Europe.

Our next question comes from the line of David Begleiter from Deutsche Bank.

Chuck, on your industrial businesses, what’s your visibility and order book? I know you are expecting continued growth. What do you actually have booked for the next period of time and how typical is that?

I would say, as we've looked, let’s take the biggest business in that segment which is automotive OEM. We have visibility typically two to three months out and there's good forecasting not always completely accurate for the full year. And if you take the North American business, we started this year thinking that North American auto and light truck builds would be a little under 11. And then I think at this meeting three months ago we said, hey, 11, 11.5 and now I’d say it’s probably 11.5, maybe 11.6. So, we have continued to see a good momentum out there, inventory levels are imbalanced. So our forecast if anything, have moved up slightly. In Europe, we aren’t expecting as strong a second half, but there is still volume growth as I’ve mentioned earlier. Russia is better than we thought, the German producers are stronger. And in China even though we’re probably not going to have the easy comps that we had in the first three or four months of the year, there is still good growth in Chinese automotive OEM productions. So that we’re maybe not going to be plus 40% as we were in the first three or four months, but we were saying all along that we thought that production could be up 15% to 20% in China, for this year. We’re still sticking to that forecast, probably at the upper end of that. And we haven’t seen things appreciably slowdown in China, at this point. So, I would say in automotive, we’re not seeing any significant deviation from what we’ve been looking at. On the industrial side, that is a whole range of products, including appliances, consumer electronics, coil and extrusion, and I would say that the business has been solid if not great, like automotive OEM. We haven’t seen any inflection points yet. Certainly as I’ve talked about our electronics exposure in fiber glass is booming. So, at this point you know we are watching, because obviously there is some negative sentiment, if you look at the media and what they’re projecting for the second half. We have talked about the one market that we thought in China may be overheated, which is Chinese construction, especially residential construction markets. We have much less of an exposure there. We have an architectural business in China, but it is the smallest of our major coatings businesses. We are doing fine there as well but we are watching that one. So at this point, we have not seen an inflection point. We are watching and we are a little cautious because of some of the headlines out there, but our businesses continue to perform well and we haven't seen a drop off yet.

And Chuck just on raws versus price, in Q3 would you expect your prices to now exceed your raws?

If they would, it would be I think slight. I think we are trying to implement price increases now, and as I told you a stabilizing environment for coatings raw materials in the third quarter. So I said we may -- we will recapture what we haven't been able to get. Whether we over capture, I'm not sure at this point but I think you are going to see a more stable environment going forward and we will catch up a little bit here in the third quarter on pricing.

And for Bob, on your tax rate I know the geographic mix has shifted, lowered your tax for this year. Given the continued growth in those regions, do we stay at 28% in 2011 as well?

At this point, I would stick with that. We certainly look at this as we get new [ph] forecasting, but right now I think that's pretty confident to model 28%. We saw strength in Europe in our industrial base and at an attractive tax rate and we had Latin America turn profitable and we are offsetting those profits with a net operating loss position. So those were favorable to our rate and yes I feel pretty comfortable 28%.

Our next question comes from the line of P.J. Juvekar of Citi.

Disappointing to see that North American architectural volume is down and correct me if I am wrong, but DIY was up last year. So I'm wondering why is it going down this year, and is it the case that maybe you lost share at those?

I'd say it’s a little early for us to say. We certainly don’t feel that on the stain side. On the paint side, I think it depends on promotions during the quarter. We know that we have the mid and lower price points. That was more favorable position during the recession environment and it may not be quite as favorable now. We are promoting our products adequately. We haven't seen anything on the paint side yet that would show us we have a lost share, but I would say that overall it's still been a sluggish environment out there. And again depending on when we have our sales into the retailers, it doesn’t always match up on a quarter-to-quarter basis with the sales out the door.

And then you had a price increase in your stores earlier in the year. Did that stick in this environment? And then can you talk about your next price increase that you mentioned?

Yes, we did have a price increase in our architectural stores business in the first quarter that was eventually followed by the other competitors in the market. At this point, we have not announced another price increase in our stores business and so we are monitoring the market and our position and depending on if we continue to see the stable raw material pricing environments, then we will not necessarily initiate a price increase in our stores.

And then if you take back, can you just talk about your outlook for the 2010 painting season, you know just talk about stores versus big boxes and what are you seeing on the remodeling activity?

Well, I think what we are seeing is a continuation of the trends that we have seen over the past certainly a year and a half. We have not seen a resumption of strong volume activity in our stores business, which is a contractor oriented, these are contractor oriented stores. This is the commercial contractors as well as the residential painters. I don’t see any reversal of the trends that we had commented on last year, if anything maybe the residential pieces slightly stronger, but more than offset by the continued weakness on the commercial side. DIY, I don't have all the data from the big box retailers to compare it, but not only in the same store sales, but they are paint department sales, but I would say on balance, the DIY is probably a little bit stronger then the contractor business and I would think that these will be confirmed as we go through the third quarter and see some of the major retailers releasing their same store sales growth.

Our next question comes from the line of Dmitry Silversteyn of Longbow Research.

Good afternoon gentlemen. Congratulations on a very strong quarter. Couple of questions although most of them have been answered. Number one, you mentioned that you are going to have a little bit of seasonal slowdown in the automotive build rates going forward sequentially. On year-over-year basis, how do you look at this business, given the cash for clunkers programs in both the US and Europe last year or is that not a concern given how strong your position is in China and how rapidly things are growing there as well as your market share gains that you've been able to get over the past year?

: I would say on the automotive OEM side, there were scrappage programs just about every region and country in the US. If you look at the cash for clunkers specifically, it was a third quarter of 2009, fourth quarter of 2009 influence. So the comparables for us in the third and fourth quarter of 2010 versus 2009 will be not as good as the second quarter because if you remember the second quarter of last year, that’s when we had the bankruptcies of GM and Chrysler. That was probably the industry at its weakest. So, obviously on a year-over-year basis, we’re going to not show the same degree of improvement in the second half and we think that sales will continue to improve versus last year’s level without cash for clunkers. In Europe, again, the eastern European countries, Russia, they are coming out of their recession rather well and the production there is growing. Germany benefiting I think from a stronger German economy and the export opportunities with that weaker Europe. So, I think even without the scrappage programs that a number of European countries have instituted last year, we are still going to see modest sales growth in Europe. And in China, they did have some incentives in 2009 especially for smaller cars. Most of those are projected to decline in the second half or certainly into 2011. But right now, we see the growth rates moderating somewhat in China in the second half again, because of the strength of 2009 but still solid growth in that market even if some of the incentives from the Chinese government for the small vehicles are withdrawn.

You talked about of the importance of fiber glass business due to the profit improvements you received in the segment. Can you quantify for us or at least ballpark for us how big that business is within the glass division?

On a sales basis, they are about equal. The two businesses, although in fiber glass we do have two Asian joint ventures that don’t show on the sales line, that do help us on the net income line, but the businesses have an equal weight in sales in the sector.

And profit, I am assuming it's significantly more coming from the fiber glass if not all?

All the improvement came from the fiber glass business in this quarter and we looked to see that trend continuing because there is a lot of momentum right now in fiber glass or we are going to get some additional pricing, the performance glazings or flat glass business. Again, commercial construction is still weak out there. We’re doing a lot of good cost work, have a number of new product initiatives. We have some opportunities we think in solar energy. But right now overall, that weakness in commercial construction is over shadowing all the good work we’re doing in other parts of the business.

In the fiber glass business is there much difference in the growth rates between epoxy resin systems versus urethane resin systems?

I would say the biggest would not be in those areas, these are nylon and polypropylene based systems that they’re going into on the reinforcement side. You have epoxy resin systems as substrates with fiber glass on the electronics side and we’ve seen strength in both of those. Electronics has been booming but the reinforcements business which goes into a lot of industrial applications like automotives, that’s been very strong. We’re seeing more use of fiber glass and plastic systems in automobiles because of the light weight advantages. We’re also seeing a little more activity on wind blades, an important part of our, what we would call our direct drill product line and fiber glass goes into wind blade production, that’s been a little inconsistent over the last couple of years. We think wind power is the most competitive alternative energy source but some of the funding and financing for these big projects has been stalled out, so we haven’t seen quite as much growth there as we anticipate. But longer term, wind blade production for fiber glass and solar energy, glass production for performance glazings should be good market drivers for us in future years.

That’s helpful. And last question on the tax rate, and you talked about 28%, is that going to be your rate for the year implying that in the second half you are going to be kind of a more in the 26%, 27% or is that the tax rate for the second half of the year?

That’s the tax rate for the full year. Okay we had a $0.07 benefit in the first half I showed in the second quarter associated with the 28% rate for the first half was the 28% rate in the second half, 28% for the full year.

And our next question comes from the line of Arun Viswanathan [ph] from Susquehanna. Hello, your line is open.

The Commodity Chemicals segment, could you just update us on how the pricing initiatives are going and you expect any weakness there if you do see some slowness in industrial activity in the second half?

Well, I went through some of the pricing initiatives for both caustic and chlorine, reviewed what had happened in the first and second quarter, here in the third quarter. We are seeing as I mentioned a very solid pricing environment for caustic soda. We think industrial activity is maintained, inventory levels are low, the cost basis for US-based industry in chlor-alkali because of the lower natural gas cost, lower ethylene, the export environment is solid, the dollar after a period of strengthening seems to be now or reverting to a weaker footing. And in fact if I look at anything over the last week or so on the euro dollar, that’s going to help us a little more than we got helped in the second quarter and it will also I think potentially keep the European imports out of North America as I mentioned (inaudible) just announced a price increase for cost accelerating in Europe for the Asia aluminum settlement and caustic was up so I would say that the pricing environment right now is very solid and if industrial activity, if we see a return to the conditions so we saw 18 months ago where industrial activity dropped off, could that change this outlook conceivably but right now we haven’t seen that and if anything we're seeing more of a reversion to the conditions in 2007 and 2008 which led to record caustic soda prices and drove significant earnings improvement for our chlor-alkali business.

So I guess most of the other operational questions have been answered. The only other one was, just on the corporate level, what’s the kind of the right corporate level that you think would be on a quarterly basis expensed?

What I would do [Arun] is average the first two quarters and use that for the basis for the second half for the year.

Ladies and gentlemen, I would like to turn the call over to management for closing remarks.

I’d like to just thank everybody for their patience during our technical issues and we appreciate everybody’s time today and look forward to talking to you next quarter. Thank you.

Ladies and gentlemen, we thank you for your participation in today’s conference. This concludes the presentation, you may now disconnect. Have a great day.