AGCO Corp (AGCO) Q4 2019 Earnings Call Transcript

AGCO Corp (AGCO) Q4 2019 Earnings Call Transcript

On the call with me this morning are Martin Richenhagen, our Chairman, President and Chief Executive Officer; Andy Beck, our Senior Vice President and Chief Financial Officer as well as Eric Hansotia, our Senior Vice President and Chief Operating Officer.. The end markets were weaker than we expected and new product warranty costs increased significantly, rationalizations of our grain and protein business added expenses to the quarter and our effective tax rate was higher than anticipated.. Fourth quarter industry sales were slightly lower than the prior year as a late year buying surge did not materialize.. Fourth quarter industry sales in Western Europe weakened significantly resulting in a 11% decline versus the prior year.. Fourth quarter industry sales in Brazil did not recover as we expected, resulting in a significant decline for both the quarter and the full year.. Fourth quarter industry sales in Brazil and all over South America were down over 20% compared to prior year.. In AGCO's Asia/Pacific/Africa region, industry sales were significantly lower due to drought conditions in Africa and Australia.. Compared to the prior year, production was lower in South America, flat in Europe and higher in North America.. And finally our December order board