BMW’s earnings fell sharply in the first nine months of the year, with China continuing to weigh heavily on the company’s results. The automaker is responding with a cost-cutting program, while warning that the fourth quarter could bring an even steeper profit decline.
The company’s key earnings measure was down 35.2% from the same period a year earlier, reaching its lowest level since 2020. BMW’s business was last weaker during the Covid pandemic, when it recorded losses in the first half of the year.
From January to the end of September, BMW reported net profit of €4.3 billion, a decline of more than 24%. Revenue fell 7.3% to €92.7 billion.
The car division, BMW’s core business, was a major drag on results. Its earnings before interest and taxes (EBIT) totaled just under €2.9 billion from the start of the year, down nearly 44%. The company’s earnings from its cars are at their lowest level in six years.
The automotive segment’s EBIT margin was 3.5% over the period, compared with 5.9% in the same period last year.
Sources: Handelsblatt.