Chief Financial Officer Bob Shanks told analysts and reporters this morning that pre-tax profit for 2013 will be $8.5 billion. But next year that will fall to between $7 billion and $8 billion.
In reaction, the company's stock fell 6.3% to $15.65 in the first hour of trading.
The company also said it could fall short of earlier guidance of 10% operating margin in North America this year because of a large recall of Ford Escape small SUVs with 1.6-liter EcoBoost engines. The redesigned Escape is sell well, but has had a troubled launch with several recalls.
Ford now expects the margin, the percentage of revenue it gets to keep, to be 9.5% to 10%. Warranty costs from the recall will be $250 million to $300 million.
Shanks tried to provide context, explaining that Ford invested heavily during the recession and absorbed greater losses during the downturn to have products in place when the economy rebounded. Looking forward, the automaker is growth driven and expanding.
"We're investing in the business everywhere," Shanks said.
On Thursday, Joe Hinrichs, Ford president of The Americas, announced the automaker would hire 11,000 employees next year to handle the 23 global vehicle launches planned. Of those workers, 6,000 are in Asia where the automaker is adding two plants in China and a third in South America. The 5,000 in the U.S. includes 3,300 salaried workers.
But replacing a significant amount of Ford's current volume will be expensive. Plants will be down for retooling and there are higher incentives when outgoing models are being sold off. The result will be a slight decline in pricing levels after five years of reporting higher average transaction prices, Shanks said.
CNBC also reported today that redesigned Ford F-series p! ickup due next year, the best-selling vehicle in the U.S. and a Ford profit driver, may be behind schedule. CNBC also reported that it might not be unveiled as expected at the Detroit auto show next month.
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