Ford Motor Co said Wednesday it expects lower pretax profit in 2014 and that its target for global automotive operating margin is at risk, due to economic conditions in Europe and South America, driving Ford shares down more than 4 percent.
Ford said it expects global pretax profit would be between $7 billion and $8 billion next year, down from an estimated $8.5 billion in 2013. Previously, Ford had said its 2013 profit would exceed $8 billion.
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Ford said its mid-decade target for operating margins worldwide of between 8 percent and 9 percent was at risk.
This year's earnings will mainly come from North America, where the company expects a profit of $8.34 billion.
North America will be less profitable in 2014, with operating margins of between 8 percent and 9 percent, which is down from a previously expected 10 percent.
(Additional reporting by Nadia Damouni in New York and Bernie Woodall in Detroit; Editing by Bernadette Baum)