Ford shares screeching on investor-day news

Adam Jeffery | CNBC

Shares of Ford fell more than 7 percent Monday afternoon after headlines emerged from its investor day.

The company said it expects its 2014 pre-tax profit to total around $6 billion—down from previous forecasts between $7 billion and $8 billion.

It blamed the reduced outlook on "higher warranty costs, including recalls, in North America—mainly for prior year models—and lower volume and weakening conditions in South America and Russia" in a press release.

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Ford also said that its 850,000-car recall that it announced last week will ultimately cost the company about $500 million, The Detroit News reported.

The company's automotive operating margin, it said, will be about 8 percent by 2020 with a long-term target of between 8 percent and 9 percent.

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The stock closed down about 7.5 percent on the day, and continued to fall another 0.5 percent in after hours trading.

Source: General Motors