Why did AGCO's Q4 earnings fall short of forecasts?

AGCO's Q4 earnings fell short of forecasts due to a combination of factors:

1. **Softened Global Demand**: AGCO experienced a decline in net sales, which missed the consensus. This reduction can be attributed to softened global demand, as indicated in the company's 2024 outlook, which was lowered amid this demand softening.
2. **Lower Sales Volume and Increased Costs**: The company's earnings were also impacted by lower sales volume and increased factory under absorption, increased warranty expenses, and higher SG&A expenses associated with the consolidation of the PTx Trimble business. These factors contributed to the decrease in operating income in South America by approximately $105 million.

In summary, AGCO's Q4 earnings fell short of forecasts due to softened global demand and lower sales volume, along with increased costs and expenses.