BMW cuts profit outlook amid restructuring costs and job losses
BMW Group in Berlin reported lower third-quarter earnings and slashed its annual profit guidance due to restructuring charges and weak sales in China.
Third quarter results fall short
The German car maker posted pre-tax earnings of €2.1 billion for the third quarter, an 11% drop compared to the previous year. This figure matched analyst expectations but came with a narrowed operating margin of 3.4% in its core automotive business. The company scrapped its profit guidance for the second time in less than five months.
Restructuring plan triggers job cuts
BMW announced it will accelerate structural measures including a programme to lay off 8,000 employees in Germany. These costs are expected to impact the fourth quarter and push the core operating margin between -0.5% and 0.5% this year. CEO Milan Nedeljkovic stated that current industry developments require swift implementation of these changes.
China market struggles continue
Sales in China fell 22% during the first nine months of the year as competition from domestic rivals intensified. The company noted this decline aligns with a broader downturn affecting the region rather than specific performance issues. BMW plans to launch its Neue Klasse model offering in China later this month.
2 outlets, different leads
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Business Recorder
BMW reports lower Q3 earnings as restructuring spells more pain towards end of year
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The Guardian
BMW warns on profits as it counts cost of plan for 8,000 job cuts
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2 independent outlets. Headlines as published. Links open the original report.