John G. Morikis
Chairman and Chief Executive Officer at Sherwin-Williams
Thank you, Heidi. As we said in January, we expected to have a strong first half of the year. Our team exceeded those expectations, and I want to thank all 64,000 of our employees for their relentless focus on serving our customers and for driving continuous improvement across the organization. We also understand that a good first half does not make a good year. We know we have work to do, and that's exactly where we are focused.
On our April call, we said we would have a much better idea of how the year might unfold as we got deeper into the painting season. Here's what we're seeing as we begin the second half, along with our plans for seizing the opportunities in front of us. In Paint Stores Group, we're facing a strong comparison to the second half a year ago where sales were up 19%. We see customer backlogs as being solid in commercial, property maintenance, and protective and marine throughout the second half and we expect to deliver very solid strong growth in these end markets.
Residential repaint should also be good for us as based on contractor feedback, though visibility here is only about six to eight weeks and existing home sales are likely to remain weak. There's some recent optimism from new residential home builders regarding starts, but it won't be enough to move the needle meaningfully for us in 2023. We are more tied to completions which are slowing. While we are confident we are growing share, we expect new residential volume will be challenging for us in the second half, though the year will likely come in closer to down high single-digits compared to the down 10% to 20% full year range we provided in January.
In DIY, double-digit growth in the first half was aided by softer comparisons to the prior year where supply chain headwinds impacted our sales. We do not expect this pace of growth to continue as comparisons become much more difficult in the second half of the year. In consumer brands, North America DIY demand remains soft. Europe demand has stabilized and Latin America markets remain mixed.
In Performance Coatings, many of our customers continue to report a high level of uncertainty regarding demand. Auto refinish demand remains an exception and is solid in most regions with shortages in parts and technicians increasing shop backlogs. Installations of our systems in North America are up strong double-digits year-to-date. This continues to bode well for future sales in this business.
General industrial end markets are choppy with North American customers reporting mixed demand by end markets served. Industrial wood demand remains soft, though some positive signs in new residential construction indicate we may have reached the bottom. In coil, demand is holding up better in the Americas versus Europe and Asia. And finally, in packaging, customers are returning to just-in-time versus just-in-case supply chain management, resulting in destocking that we expect will continue in the second half. The longer term view here is still very robust, with customers already committed to fill the additional capacity we're bringing on this year.
Let me be very clear in our expectations here. We do not accept the excuse that markets are soft, and therefore our opportunities are limited. Our job is not to report conditions, but to influence results. We know we cannot defy gravity in terms of the macro environment. But in every business, we are aggressively pursuing new accounts and share of wallet opportunities to drive market share gains.
Moving to the cost side, we are revising our raw material outlook. We now expect costs to be down by mid to high single-digit percentage in 2023 compared to 2022. We expect to see decreases across several commodity categories, though the ranges likely will vary widely. We expect other costs, including wages and other input costs, to be up in the mid to high single-digit range. Compared to the guidance we laid out in January, full year sales growth and raw material costs are trending better than we anticipated. With this first half outperformance, we expect considerable year-over-year operating margin expansion and earnings growth for the year. At the same time, these dynamics also afford us the opportunity to accelerate growth and service investments at a higher level than anticipated at the beginning of the year.
As a result of these disciplined and enterprise-wide investments, which will drive our customers continued success, we now expect the year-over-year increase in SG&A to be in the high single-digit to low double-digit range for the full year. As in the past, we are highly confident in our ability to drive future above-market growth and our returns will justify the actions we are taking now.
Now, moving on to our specific guidance. We anticipate our third quarter 2023 consolidated net sales will be up or down a low single-digit percentage compared to the third quarter of 2022, with volume down low to mid-single-digits. For the full year 2023, we expect consolidated net sales to be up a low single-digit percentage with a volume down a low single-digit percentage. Our sales expectations by segment for the third quarter and the full year are included in the slide deck issued with our press release this morning.
We are increasing our full year 2023 diluted net income per share to be in the range of $8.46 to $8.86 per share. We believe this increased range accurately reflects our first half outperformance, continued pricing discipline and moderating raw material costs, while also acknowledging the ongoing uncertainty in the second half demand environment. This guidance includes acquisition-related amortization expense of approximately $0.81 per share. It also includes net expense related to our previously announced targeted restructuring actions of $0.03 per share. On an adjusted basis, we expect full year 2023 earnings per share in the range of $9.30 to $9.70. This is an increase of 14.5% at the midpoint compared to our prior adjusted guidance of $7.95 to $8.65 per share.
We've provided a GAAP reconciliation in the Reg G table within our press release. Our slide deck includes additional information on our updated assumptions for the year along with guidance on our expectations for currency exchange, effective tax rate, capex, depreciation and amortization and interest expense. We've also provided an update on our previously announced restructuring effort. One-time costs will be lower than previously anticipated. The estimated annual savings from our actions are unchanged.
As we begin the second half, we'll remain focused on what we can control. Across the business, this means growing new accounts and share of wallet. It also means developing and retaining talent, improving and simplifying our operations and managing price-cost dynamics. We remain confident in our differentiated strategy, our capabilities and our product and service solutions. Should the demand environment prove to be better than we are currently assuming, we would expect to deliver better results.
What we can't control is the market. We're not interested in trying to time the economic recovery. What we are interested in is taking full advantage of it when it eventually arrives. This means investing in our growth now ahead of the curve. This approach has served our customers and our shareholders well over multiple past cycles. I have every confidence that it will do so once again. Above all, I have the utmost confidence in our leadership team and our people. They are the true differentiators. Together we expect to continue outperforming our competitors and the market.
This concludes our prepared remarks. And with that, I'd like to thank you for joining us this morning. We'll be happy to take your questions.
