Westinghouse Air Brake Technologies(WAB)2024-07-24 15:43Sales Performance - Net sales for the three months ended June 30, 2024 increased by $237 million, or 9.8%, to $2.64 billion compared to the same period in 2023[7] - Net sales for the six months ended June 30, 2024 increased by $540 million, or 11.7%, to $5.14 billion compared to the same period in 2023[17] - Organic sales increased by $221 million, driven by both Freight and Transit Segments, with Freight Equipment sales benefiting from higher North American and international locomotive sales[7] - Transit Segment organic sales increased by $55 million, primarily driven by strong Aftermarket sales due to increased infrastructure investment[24] - Sales from acquisitions contributed $70 million in the Freight Segment, while unfavorable changes in foreign exchange rates decreased sales by $13 million[17] Operating Expenses - Total operating expenses increased by $33 million, or 8.0%, for the three months ended June 30, 2024, with operating expenses as a percentage of sales decreasing to 16.8% from 17.1%[8] - Selling, general and administrative expenses (SG&A) increased by $31 million, primarily due to higher employee compensation and costs to support increased sales volume[8] - Restructuring costs included in SG&A were $3 million for the three months ended June 30, 2024, related to Integration 2.0 initiatives[8] Cost of Sales - Freight Segment cost of sales increased by $213 million, with cost of sales as a percentage of net sales decreasing by 3.4 percentage points, indicating improved pricing and productivity[22] Interest Expense - Interest expense, net, decreased by $7 million to $96 million for the six months ended June 30, 2024, primarily due to lower average overall debt balances[18]