BMW Reports Sharp Profit Decline as China Sales Weaken

(MENAFN) German automaker BMW recorded a 35.2% annual decline in operating profit during the first nine months of the year, with earnings falling to €5.2 billion ($5.8 billion), marking the company’s weakest performance for that period since 2020.

The Munich-based manufacturer also reported lower revenue and profits in the third quarter, as a significant slowdown in China’s automotive market weighed on its financial results.

Revenue decreased 5.8% year-on-year to €30.45 billion, while earnings before interest and taxes (EBIT) dropped 29.7% to €1.59 billion.

BMW’s automotive division posted an operating margin of 3.4% in the third quarter, representing a decline of 1.8 percentage points compared with the same period last year.

Although the company delivered more vehicles in the United States and Europe, weaker demand in China continued to affect its performance. Sales in the Chinese market fell by approximately 25%.

BMW revised its full-year financial outlook on Tuesday evening for the second time this year, warning that the operating margin of its automotive division could reach around 0.5%, potentially falling either above or below zero.

The updated projection raises concerns about the company’s ability to generate profits from its core vehicle manufacturing operations.

The automaker also adjusted its expectations for vehicle deliveries, replacing its previous forecast of a slight annual decline of between 1% and 4.9% with a projected decrease ranging from 5% to 9.9%.

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