Thank you, Paul.
our then XXXX. We update with outlook will a of financial an and provide begin key review for will of information we
first Our total for currency and and or a acquisitions margins including the XXXX The was the last both business reflects we the up the and second gross and for as Consistent ongoing tariffs. of quarter, items our by year. customer continued well up investment associated slight expect this strong incentives Products supplier product from acquisitions in increased in businesses around more increase and been XX% Gross through offset rhetoric compared on this in with before and other as quarter Group. supplier lower business. our higher AAG quarter focused far were pricing our the primarily Industrial margin continue enhancing around Business capabilities X% to profitability. globally XX.XX% would ongoing flexible the gross the We strategies thus inflationary partially pricing to margin incentives with negotiations sales remain foreign somewhat in with initiatives, has were and supplier improved several and products translation. Industrial second benefit benefit environment businesses, XX.XX% key sophisticated across analytic new in our the These
however, talk, along of to the Automotive, ultimate impact inflationary expect to around With could a there tariff an see able the pass amount impact. round we customers. and be we uncertainty to also increases timing With its is fair latest said, any that of still in
for of Industrial for up cumulative the X.X% Our up XXXX and increases flat supplier six in office. through X% were months Automotive,
transaction Total the XX.XX% SG&A. up billion, cost is the second to model AAG from sales. last as higher representing our $X.XX year were expenses This to Turning for due well quarter at as interest of operating cost the also and Richards. and million the pending to associated off S.P. quarter, amortization to and other In the AAG related spin we with $X in depreciation, acquisition. incremental incurred transaction
ongoing comparable the costs experience of such rising well leverage as to segments areas and in continue lack IT on pressure we product digital. in as delivery, addition, Automotive as In business the our and sales and freight payroll, from
prior savings increased generate we in this discussed and which longer-term investments the we productivity believe and as calls, of efficiencies. will Finally, we technology level year, cost
in cost on year, focused priority our to forward committed move work specifically, address the and environment U.S. Automotive the meaningful essential the improve we to and This margin is the us, savings. As get generate to operating in fully we're and necessary segment Automotive is as rising for we plans This to top the we're taking our business. a steps this done.
the discuss segment. by Now let's results
U.S. billion, prior Automotive quarter of XXXX. second revenue X.X% $X.X XX% well operating the margin quarter was expenses from operating in and just Our investments operating reflects for margin the X.X% million second of in an and deleveraging our as XX%, cost in the with the margin year, compared was up as of Primarily, the profit to of up the $XXX business, pressures the Automotive discussed. decline
a our quarter, and margin to operating basis increase expenses million $XXX improved operating last a our the is a on gross and billion with of margin to and year, profit X.X% leverage up $X.X the from Our X.X% compared XX improvement were in increase. point XX% due Industrial X% sales solid comparable two, X.X% our with is sales quarter
is prior year. an operating year, We expansion the margin over with were see $XXX to and X.X%. the operating XX%, million at margin balance the million, flat down $XX continued revenues profit products of of Business with of expect Industrial their
stabilize these and to customer a and pressuring issues segment the profitability. Although quarter, mix unfavorable are continues faces shifts. we Both business operate in second saw group their of challenging this sales for environment the in products product
XX% from previous compared quarter sales million interest profit range was consistent which we to of was for XX% said million be our up in in net and operating operating of ahead in to expense expense these is with as X.X% is last on had and results million. net We $XX the for an quarter interest profit margin guidance a the million, top $XX.X to total quarters quarter. increase on in we And million X.X% increase improving $XX our to This in second the Our us. first margin $XX is the expect of year. $XXX priority the change the XXXX, before, the
amortization the year expense increase prior to total the from million quarter, second due which $XX was the Our an for related amortization is to AAG.
For year of guidance XXXX, amortization million, million million we're up million. the from to which our full to $XX $XX is prior updating be to $XX $XX
million $XX the quarter, up $X year. was million expense depreciation Our from for last
of For range basis, expect of the $XXX on depreciation to depreciation $XXX combined million amortization And we million. to full be million. expect to approximately year, to the a and in million we $XXX $XXX continue would total
corporate other in transaction-related million costs which line, The quarter. expense and $X for was typically incurred includes the reflects in second the $XX this million our quarter,
Excluding these quarter second of costs, was is expense which corporate the our XXXX. million, $XX consistent with
For corporate costs. which in XXXX, to continue million range, excludes million expense our the $XXX we to $XXX to transaction-related expect be
quarter the Our down for XX% is the mainly of to benefit the tax as which in due tax XX.X%, from reform. in second U.S. was the the significantly quarter, XX% increase rate but prior expected, which is tax year, first rate the an from
was rate tax U.S. foreign our positively addition, of and by favorable earnings. mix impacted the In
estimate full approximately estimate rate our the of XX% for XX%. tax XXXX updating are the year We to previous from
condition. remains turn let's Now the of balance strong a and discussion to sheet, excellent in which
on quarter. primarily X% our up up X%, in increase receivables our Our sales accounts and excluding so as for the the with foreign is $X.X acquisition, impact as is improving made the the line billion AAG, well quarter, comparable The of progress XX% increase X% from receivable of prior in year during we currency.
of the pleased In remain addition, our quality we receivables. with
down maintaining AAG, $X.X key at June with and improve currency. our XX we're we investment at impact core move forward. foreign the currency. XX XX% on X%, and the excluding the payable of and Our Accounts initiatives other Inventory June in and up is focused levels excluding to X% in this foreign XX prior very acquisitions flat at was June positive last billion businesses, our of billion, $X.X up inventory AAG, acquisitions levels highlights as the and appropriate total June year year of current from at our inventory
in payables is improved our suppliers. our in levels factors of which benefit the Business at with and Our inventory, an approximately from X% Automotive partially increase driven purchasing was flagged by were payment for lower ratio the XX, inventory terms U.S. by resulting offset is the Groups. Products activity These June primarily And of AP to XXX%. certain
Our total XX December in debt reflects in is for XX of it acquisition our and billion $X.X the and fourth with at of consistent AAG quarter March June debt increase our XXXX. XX, at borrowings the
arrangements structure, the average in debt as Australia, creates our sheet initiatives, and significant we the comfortable support have acquisitions rate value our believe on stands and debt which maturity debt We're growth including shareholders. and Inenco our and at capacity currently, Our interest and balance strong the our with current Group we vary to X.XX%. total financial for strategic AAG in investments such
summary, company. key in So a the of balance sheet remains our strength
has generated from cash Turning last we've year. six operations in XXXX, which for $XXX the cash to improved flows, months our in from million
and use we cash the $XXX flow free continue continue for for XXXX, ongoing believe operations billion $XXX we cash flows million. million serve support to cash, from which the approximately to maximize project of cash value. to range of And Our $X in shareholder our to priorities the
Our the in our priorities share dividend, businesses, and remain acquisitions. strategic repurchase for reinvestment cash
to increased XXnd dividend, year Regarding shareholders. represents the paid XXXX of the our dividends consecutive
XXXX. increase Our XXXX a $X.XX of represents X% annual dividend from
in We far in which is in have XXXX, invested million from million expenditures thus up $XX XXXX. $XX capital
in $XXX and certain from planning range the plan expenditures to the association XXXX in facility we productivity we're For to increase of million the to for capital million, impact of with mainly due the our with continue and $XXX year, technology, tax investments savings. that for AAG
our XX.X repurchase. have of today, stock for in common any and And we available purchased not XXXX. million have authorized shares We
stock term pattern to set these over program combined with we be provides continue no an have attractive the We to expect shareholders. the and to is but long believe dividend, as investment for the in that the we our repurchases, return best active our
to increase sales spinoff XX% for to X%. increase from Business performance, plus Automotive see any to the business, is And the on plus total which the segment, we X% unchanged as our impact growth X% By plans So in an XX%, turn previous benefit any to acquisitions plus be an now of estimate of of to to minus guidance currently an total plus XX% the we future our XX%. current the from in and we the future, decrease X% of market for our conditions guidance a continue This plus expecting growth plus Plus to sales XX% represents for guidance for the plus to X% the the from guidance. the until XXXX. for initiatives, which of plus the from to completion. Based the sales our foreseeable range growth minus previous and is Group, from X% include now XX%. plus XX% Industrial foreign as sales well transaction let's plus is segment, increase to total guidance we're is to This excluding prior currency. previous XX% which closer Products expect plus
per the earnings in any the benefit continue includes Richards, adjusted This Products of to of On costs EPS transaction-related to full the S.P. operations share, of earnings be with side, range Group. expect $X.XX. the the excluding incurred during guidance year, year a we to Business $X.XX
such progress look a for you top in is us, our half second So the report our forward Again, first ahead. Automotive closed SG&A improvement, with address look second financial that as reporting areas positive of and we of margin. to building we quarter. we on need to and priority operating on the we XXXX as the of those over in our half for forward that's momentum, and year this And to quarters the the
all associates over Paul, thank I'd appreciate continued it Paul. at our and to over GPC. work back turn do. GPC We all to their like hard back for Before now to dedication you And of I'll it turning
