BMW reports lower Q3 earnings as restructuring spells more pain towards end of year

BMW’s pre-tax profit declined 11% year on year to €2.1 billion in the third quarter, Business Recorder reported, while the margin at its core automotive operation came in at 3.4%. That margin exceeded the 3.1% analysts had anticipated, but was below the 5.2% recorded a year earlier.

The German carmaker withdrew its profit guidance for the second time in under five months, setting a full-year core operating margin range of -0.5% to 0.5%. BMW cited restructuring expenses expected in the fourth quarter, including plans to eliminate 8,000 jobs in Germany, and said it would speed up reductions in management roles. Weak demand in China was also weighing on the business.