Deere & Company (NYSE:DE) Q4 2020 Earnings Conference Call - Final Transcript
Nov 25, 2020 • 10:00 am ET
Good morning, and welcome to the Deere & Company Fourth Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Josh Jepsen, Director of Investor Relations. Thank you. You may begin.
Thanks, Robin. Hello. Also on the call today are Ryan Campbell, our CFO; Jahmy Hindman, our Chief Technology Officer; and Brent Norwood, Manager, Investor Communications. Today we'll take a closer look at Deere's fourth quarter earnings, then spend some time talking about our markets and our current outlook for fiscal 2021. After that, we'll respond to your questions. Please note that slides are available to complement the call this morning. They can be accessed on our website at johndeere.com/earnings. First, a reminder, this call is being broadcast live on the internet and recorded for future transmission and use by Deere & Company. Any other use, recording, or transmission of any portion of this copyrighted broadcast without the express written consent of Deere is strictly prohibited.
Participants in the call, including the Q&A session, agree that their likeness and remarks in all media may be stored and used as part of the earnings call. This call includes forward-looking comments concerning the company's plans and projections for the future that are subject to important risks and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company's most recent Form 8-K and periodic reports filed with the Securities and Exchange Commission. This call may also include financial measures that are not in conformance with accounting principles generally accepted in the United States of America, or GAAP. Additional information concerning these measures including reconciliations to comparable GAAP measures is included in the release and posted on our website at johndeere.com/earnings under Quarterly Earnings and Events.
I'll now turn the call over to Brent Norwood.
John Deere demonstrated strong execution in the fourth quarter resulting in a 12% margin for the Equipment Operations and net income exceeding our full year forecast. Despite significant uncertainty early in the year for large Ag markets, fundamentals improved throughout the fourth quarter driving growth prospects for 2021. Meanwhile, markets for our Construction & Forestry division also improved in the fourth quarter leading to a solid finish to the year and modest levels of recovery projected for fiscal year '21. Now, let's take a closer look at our year-end results for 2020 beginning on slide 3. For the full year, net sales and revenue were down 9% to $35.54 billion while net sales for Equipment Operations were down 10% to $31.272 billion.
Net income attributable to Deere & Company was $2.751 billion or $8.69 per diluted share. Net income for the year was negatively affected by impairment charges, losses on business disposals, and employee separation costs of $458 million after-tax. For the same periods in 2019, the similar charges were $82 million. Slide 4 shows the results for the fourth quarter. Net sales and revenue were down 2% to $9.731 billion while net sales for the