Industrial gas sales for the quarter rose 13 percent and operating income increased 26 percent, including Carburos Metalicos. The tonnage gas business posted solid volume gains in both the U.S. and Europe, principally from increased loading on our hydrogen facilities for the chemical and refinery industries. Productivity improvements in the U.S. more than offset continued economic softness in northern Europe. Gas equity affiliate results, excluding Carburos Metalicos, were slightly higher than last year. In chemicals, second quarter operating income was slightly higher than last year's results on a 5 percent increase in sales.
Modest volume gains across most businesses offset a slight decline in operating margin.
The equipment and services segment reported significantly higher sales and operating income for the period. These results reflected a high level of activity, and the business ended the quarter with a near-record backlog of high quality projects. The corporate and other segment included a one-time gain on the sale of an equity investment. This gain was offset by costs associated with refinancing the debt of an equity affiliate, and unfavorable foreign exchange. The quarter's results also reflected higher interest expense for new capital investments brought onstream and the Carburos Metalicos acquisition.