Published on : Oct 01, 2014
Suffering from higher recall costs in its North American market and great losses in South America and Russia have made Ford motor Co. to cut-down its forecast regarding pretax profit this year to $6 billion from $7 billion to $8 billion as earlier mentioned.
Company’s CFO Bob Shanks said that company’s pretax profit in 2015 is expected to rise between $8.5 and $9.5 billion, versus the analysts’ forecast profits of $10.5 billion.
U.S.’s no. 2 automobile company Ford saw a decline in its shares of 7.5% as its shares sank down to $15.11 on Monday, and further to $15 in after-hours trading.
The details about company’s sinking shares were given by Ford executives at a conference in Dearborn, Michigan, under the leadership of Chief Executive Mark Fields. Mark Fields had recently taken power from former CEO Alan Mulally who is known to have reversed financial status of Ford and taken its out of a phase of a steep decline to that of profitability.
Fields mentioned that this bad news about company’s sinking shares is a short-term phase in company’s growth story including company’s target of selling 9.4 million vehicles by the end of 2020 in the global market.
He also mentioned that laying out news like this should be considered a sign of progress from the days when the company was used to delaying actions on difficult issues. Also, the company will continue to incur losses in 2015 in its South American market, but would be lesser than those incurred in this year.