BMW profits drop 11% amid restructuring costs and China market decline
BMW reported a decline in third-quarter profits, driven by restructuring expenses and weakening sales in the Chinese market.
The German luxury automaker BMW announced an 11% drop in pre-tax profits for the third quarter, reaching 2.1 billion euros, aligning with analyst expectations.
The decline is attributed to costs associated with an extensive restructuring program, which includes cutting 8,000 jobs in Germany and accelerating the reduction of administrative roles to address current industry shifts.
In terms of revenue, the company faced headwinds as sales in China, the world's largest auto market, fell by 22% in the first nine months of the year, struggling against lower-cost local competitors.
According to media reports, BMW now projects an operating margin between -0.5% and 0.5% for the year, with CEO Milan Nedeljkovic emphasizing the need for swift and decisive action to navigate the current market environment.