BMW has reported an 11 per cent year-on-year decline in third-quarter pre-tax earnings, in line with analyst expectations, as the German carmaker battles weak demand in China and prepares for higher restructuring costs towards the end of the year, Reuters reported. The company posted pre-tax earnings of €2.1 billion ($2.36 billion) for the quarter, matching the forecast in a consensus compiled by BMW.
Its core automotive business recorded an operating margin of 3.4 per cent, down from 5.2 per cent in the corresponding period last year, although it was ahead of analysts' estimate of 3.1 per cent.
"Current developments in our industry call for decisiveness and swift implementation. We will therefore specifically intensify and accelerate structural measures," CEO Milan Nedeljkovic was quoted as saying.
2026 Profit Outlook Cut For Second Time
BMW on Tuesday evening lowered its 2026 outlook for the second time in less than five months, abandoning its earlier profit guidance. The carmaker now expects its core automotive operating margin to be between -0.5 per cent and 0.5 per cent for the year.
The revised forecast marks a sharp deterioration from the double-digit margin the company recorded five years ago. BMW attributed the adjustment to costs expected in the fourth quarter as part of its restructuring programme.
The programme includes plans to cut 8,000 jobs in Germany, with the company facing the financial impact of the measures towards the end of the year.
Weak China Market Adds Pressure
BMW's latest outlook revision comes amid mounting pressure on European carmakers in China, where sales of petrol-powered vehicles have declined sharply in recent quarters.
The share of internal combustion engine vehicles in China's market has fallen below 35 per cent, driven by rising fuel prices and the launch of electric vehicles by domestic manufacturers. The changing market dynamics have prompted several European automakers, including BMW, to revise their financial expectations.
