Ford Cuts Profits Outlook for 2014
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Kevork Djansezian/Getty Images(NEW YORK) — Will Ford’s profit warning be the first of many?
The share price of the second-largest U.S. auto company plunged more than 7 percent as the firm cut its full-year profits outlook.
At a conference call for investors Monday, Ford CEO Mark Fields said he expects a pretax profit of around $6 billion this year, down from the $7 billion to $8 billion the firm previously forecast.
The decline is mainly attributed to weak sales in Russia, which has been slapped with economic sanctions that have impacted the country’s growth.
Ford’s European operations are likely to declare a loss of well over $1 billion this year. The region’s economic troubles and slower growth in South America are a worry for many large multi-national corporations.
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