Second quarter sales in our Microenvironments division, or ME, grew 6% to $51 million, a level last achieved in 2007. The growth was driven by demand for shippers including our 300-millimeter wafer shippers which reached a record quarterly sales level. The ME operating margin was 17%. The division continues to move forward in a number of critical initiatives related to advance wafer and radical handling including versions of our new 300-millimeter fruit carriers made of barrier materials, as well as product to support the industry's move to 450-millimeter wafer size and EUV.
During the quarter, we improved our manufacturing performance, and we're able to fill a number of orders for the new [indiscernible]. After a very strong 25% sequential growth in the first quarter, sales of our Specialty Materials division declined 6%. Most of the decline reflected lower semiconductor sales for graphic components for etch applications, while the industrial side of this business and demand for sewer products remain solid. Roughly 60% of the Specialty Materials sales are outside the semiconductor market. Operating margin for Specialty Materials was 20% in Q2, ahead of our expectations for this business at these revenue levels. While there were many positives in the quarter, looking ahead, there are some signs of softening in portions of the semiconductor industry. Industry volatility is not new to us. What is different is the strategy and operating model we have put in place over the past 3 years. Our results show that we've accelerated and focused our efforts to take market share by leveraging our strength in controlling contamination in the industry's most challenging manufacturing environments. We have also been bringing that technology to emerging markets, non-SEMI markets that have a growing need for greater contamination growth in their manufacturing processes. But at the same time, we have been extremely careful about adding fixed costs. As a result, we've not only grown faster than many of our peers, but we have delivered much higher operating results and cash flow than anytime in the past cycles. We believe this business model, combined with the diverse product offering in our largely unit-driven portfolio products, is the right recipe to deliver attractive operating performance throughout the cycle. I'll now turn it over to Greg for some additional commentary on the financial and on our outlook for the third quarter. Greg?
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