Question-and-Answer Session
Operator
(Operator Instructions). Our first question will come from the line of Eric Glover with Canaccord Adams.
Eric Glover - Canaccord Adams
Congratulations on the quarter.
Jack Golsen
Thanks, Eric, how are you?
Eric Glover - Canaccord Adams
Good, thanks. First, I'm curious about the strength you mentioned in the residential side of your Climate Control business. And can you talk about what's driving the sales growth there and whether you think you may be actually gaining share in that area?
Jack Golsen
Well, we know that for several years, consistently we've gained share in that area. Year-to-date, I don't really like to look at quarterly numbers too close because they are not very reliable, but we know that that's been the trend the last several years. As to what's driving it, we've always felt that there were different industry drivers for this particular product than the unitary air-conditioning at large. Unitary air-conditioning at large is just driven by the size of the market, whatever as the market goes up and down that goes up and down.
We all know that residential market is down in general, but the drivers for this market are energy concerns, energy cost concerns, energy security concerns, environmental issues, and we think we feel that it's a perfect storm right now of all of these things that make this the right product for the time and apparently that's reflected in the results so far this year.
Eric Glover - Canaccord Adams
Okay, thanks. I was wondering if you could also review again the sequential drop in operating margin and the Chemical products business, excluding the gain from litigation?
Jack Golsen
Sequential drop --
Eric Glover - Canaccord Adams
Yeah, I have your Chemical products operating margin at 13.3% in the first quarter going to 11.4% including the gain in the second quarter.
Jack Golsen
Hold on a second. You got 11.3% if you take out the judgment?
Eric Glover - Canaccord Adams
Yes. Alright, we can come back to that. Could you comment on the level for SG&A going forward? It was up to $22 million from $18.4 million in the first quarter and what's sort of a good range for that in the third quarter?
Tony Shelby
Well that's a reflection of the increased sales. A lot of that is Commissions. I think the bulk of that would be Commission.
Jack Golsen
Yes, it would.
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