Ford Motor Co. is warning its profits will likely fall next year even as it moves forward with ambitious plans to grow its business in the U.S., South America and Asia.
Ford’s shares fell 6.3% to $15.65 at the closing for the New York Stock Exchange on Wednesday after the company’s chief financial officer presented the new guidance for 2014 during a meeting in New York. It marked the steepest one-day decline of Ford shares in more than two years. The value of Ford common shares had increased by 21% this year – though that trailed the 27% gain for the Standard & Poor’s 500 Index.
Ford estimated in the disclosure statement it will earn $7 billion to $8 billion in 2014 after an estimated $8.5 billion pretax profit for 2013. Ford executives said last week the company will introduce 23 new vehicles globally in 2014, more than double this year’s total, adding costs for equipment and marketing.