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Home > News > Company News > Ford lowers 2014 pretax profit forecast to $6 billion

Ford lowers 2014 pretax profit forecast to $6 billion

By Meredith Mazzilli , 2014-09-30 10:39:14

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Ford Motor Co (F.N) has lowered its expectation for pretax profit this year to $6 billion, from its previous forecast of $7 billion to $8 billion, the automaker's chief financial officer told investors on Monday.

Ford shares closed down 7.5 percent at $15.11 and continued to drop in after-hours trading to $14.95.

Ford expects pretax profit to rise in 2015 to between $8.5 billion and $9.5 billion, Chief Financial Officer Bob Shanks said at a briefing near company headquarters.

Repairs on recalled vehicles, mainly in North America, will cost the company about $1 billion, and losses in South America are expected to be higher than previously forecast, at nearly $1 billion, Shanks said.

Shanks also said that Ford now expects to lose about $300 million this year in Russia, more than previously expected.

Ford is forecasting a pretax operating profit margin of about 8 percent by 2020, Shanks said, adding that the company targets break-even at two-thirds of wholesale volume by 2018.

Ford said that the company will continue to make losses in South America in 2015, but not as much as this year.


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