Germany’s BMW gave a tepid markets outlook and predicted the euro would stay strong after third-quarter earnings before interest and tax (EBIT) shrank 86 per cent amid a global economic slump, reports Reuters.

Shares in the world’s biggest maker of premium cars fell 6.2 per cent by 0857 GMT, the biggest decliner in the DJ Stoxx European car sector index, which was down 3.5 per cent.

Analysts cited disappointing third-quarter results – its core automobiles business lost €76m ($112.3m) before interest and tax in the quarter – and a lack of apparent impetus to inspire confidence in the stock.

”We still see several risks at BMW from currencies, especially euro/sterling, and lower residuals in the future and therefore confirm our negative view on BMW,” DZ Bank analyst Michael Punzet told clients.

BMW said on Tuesday it still saw positive 2009 earnings thanks to cost cuts even as it repeated sales volume was set to fall 10-15 per cent.