By Bernie Woodall
DEARBORN (Reuters) - Ford Motor Co (F.N) has lowered its expectation for pretax profit this year to $6 billion, from its previous forecast of $7 billion to $8 billion, the automaker's chief financial officer told investors on Monday.
Ford shares closed down 7.5 percent at $15.11 and continued to drop in after-hours trading to $14.95.
Ford expects pretax profit to rise in 2015 to between $8.5 billion and $9.5 billion, Chief Financial Officer Bob Shanks said at a briefing near company headquarters.
Repairs on recalled vehicles, mainly in North America, will cost the company about $1 billion, and losses in South America are expected to be higher than previously forecast, at nearly $1 billion, Shanks said.
Shanks also said that Ford now expects to lose about $300 million this year in Russia, more than previously expected.
Ford is forecasting a pretax operating profit margin of about 8 percent by 2020, Shanks said, adding that the company targets break-even at two-thirds of wholesale volume by 2018.
Ford said that the company will continue to make losses in South America in 2015, but not as much as this year.
(Reporting by Bernie Woodall in Dearborn, Mich.; editing by Meredith Mazzilli and Matthew Lewis)