Chemtura AgroSolutions segment reported a
$21 millionincrease in sales volume. North Americaled the growth, seeing strong demand for our miticide products, followed by Latin America. Our Industrial Performance segment reported a $15 millionincrease in sales volume from our petroleum additives and certain synthetic products which was offset, in part, by continued weakness in urethane product sales for mining and electronic applications. Consumer Products sales volume declined $12 millionrepresenting a slow start to the 2013 pool season in the northern hemisphere due to prolonged cold and wet conditions. Our Industrial Engineered Products segment continues to experience a reduction in demand for products related to insulated foam and electronic applications, resulting in a $24 milliondecline in sales volume in the second quarter of 2013 compared with the second quarter of 2012. Gross profit for the second quarter of 2013 was $187 million, a decrease of $12 millioncompared with the second quarter of 2012. Gross profit as a percentage of net sales decreased to 25% for the second quarter of 2013 as compared with 27% for the second quarter of 2012. Gross profit was impacted by $5 millionfrom lower sales volume and unfavorable product mix changes, $4 millionin lower selling prices, $2 millionin unfavorable manufacturing costs and variances and a $1 millionincrease in other costs. 34 --------------------------------------------------------------------------------
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Selling, general and administrative ("SG&A") expenses of
$67 millionwere $5 millionlower than the second quarter of 2012, primarily the result of lower staff count and associated benefits related to our restructuring initiatives in 2012 and 2013.
Depreciation and amortization expense of
Research and development expense ("R&D") of
Facility closures, severance and related costs were
$11 millionin the second quarter of 2013 compared with $7 millionin the second quarter of 2012. During the first quarter of 2013, the Board of Directors (the "Board") approved a restructuring plan providing for, among other things, actions to reduce stranded costs related to ongoing strategic initiatives. The expense in 2013 primarily related to the cost of severance associated with this program. The expense in 2012 primarily related to initiatives to improve operating effectiveness of certain global corporate functions. Other income, net was $12 millionin the second quarter of 2013 compared with other income, net of $5 millionfor the second quarter of 2012. During the second quarter of 2013, we recognized a gain of $15 millionrelated to the release of cumulative translation adjustments associated with the rationalization of certain European subsidiaries that are no longer required. This gain was offset by net foreign currency losses in 2013 compared with net foreign currency gains in 2012. In 2013, we entered into two foreign currency hedge instruments which enabled us to offset some of the foreign currency exposure of the Euro during the second quarter of 2013.