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Building Products net sales of $322.1 million in the second quarter of2007 increased from $287.4 million in the prior year. Excluding the effects offavorable foreign exchange rates of $9 million, sales increased by 9 percentdue to volume growth in Europe and both price realization and improved productmix across all geographies. Reported operating income increased to $58.8million from $53.2 million in the second quarter of 2006. Adjusted operatingincome of $63.4 million grew from $53.4 million on the same basis in the prioryear period. The growth was driven by improved price realization, betterproduct mix and improved manufacturing productivity. These benefits werepartially offset by inflation in raw materials and by higher SG&A supportingsales growth.

Cabinets net sales in the second quarter of 2007 of $63.9 millionincreased 9 percent from $58.7 million in 2006 on higher volume. Reportedoperating income for the second quarter of $4.4 million improved from $2.1million in the prior year due to sales growth, partially offset bymanufacturing cost increases. There were no material adjustments to operatingincome in either period.

Unallocated corporate expense of $11.6 million in 2007 increased from $9.1million in 2006. Adjusted expense of $11.0 million increased from $9.1 millionon the same basis in the prior year, primarily due to the impact on the U.S.pension credit of unfavorable demographic changes and to higher incentivecompensation.

Year-to-Date Results

For the six months ended June 30, 2007 , net sales were $1,784.0 millioncompared to $1,706.3 million in 2006. Excluding a $32 million favorable impactfrom exchange rates, net sales increased by 3 percent. Improvement in bothprice and product mix offset modest volume declines.

Reported operating income for the first six months was $159.7 millioncompared to operating income of $129.3 million for the same period in 2006.Adjusted operating income of $155.7 million increased 22 percent compared toadjusted operating income of $127.4 million in the prior year period.Operating income grew due to benefits from price realization and manufacturingproductivity in excess of inflation, and to improved product mix.