Ford shares tumble on lower profit outlook for 2014-2015

Higher recall costs in North America and steeper losses in Russia and South America have caused Ford Motor Co (F.N) to slash its forecast for pretax profit this year to $6 billion, from $7 billion to $8 billion previously, executives told investors at a briefing on Monday. Bob Shanks, Ford's chief financial officer, also said the company's 2015 pretax profit is now expected to rise to between $8.5 billion and $9.5 billion, versus analysts' estimates of $10.6 billion. Ford shares closed down 7.5 percent at $15.11 on Monday and fell further in after-hours trading to $15. Mulally is credited with reversing a steep decline at Ford and returning it to profitability and an investment grade rating.

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