BMW has reported a significant decline in third-quarter profits following its second profit warning of the year, as growing competition from Chinese manufacturers and restructuring costs continue to weigh on the German automaker.

The company’s pre-tax profit fell 11% compared with the same period last year, while net profit dropped approximately 15% to €1.45 billion. Revenue also declined by almost 6% to €30.45 billion.

The results came a day after BMW warned that additional restructuring expenses, including planned job cuts, could push its core automotive division close to break-even this year.

The company expects its operating margin in the car business to fall between -0.5% and +0.5%, significantly below its previous forecast of 1% to 3%.

BMW’s automotive operating margin narrowed to 3.4% in the third quarter, compared with 5.2% a year earlier.

Chief executive Milan Nedeljkovic said the company would accelerate structural changes in response to mounting industry pressures.

Competition from Chinese manufacturers has become a growing challenge for BMW, Mercedes-Benz and Volkswagen. BMW’s vehicle deliveries in China fell 24.8% during the quarter, contributing to a 6.3% decline in global deliveries.

However, deliveries increased by 2.6% in Europe and 2.5% in the US.

BMW is now looking to reduce costs, streamline operations and localise more of its Chinese supply chain as it attempts to recover market share in an increasingly competitive global automotive industry.