FRANKFURT: German automaker BMW AG sounded a note of caution on Tuesday over its business in China as it reported a 20 per cent increase in its third-quarter net profit from a year earlier, when financial charges lowered earnings. While BMW hit profit targets for its high-end cars and SUVs during the July to September quarter, it said a slowdown in previously booming China, as well as tough competition in the United States, would cap profit rises for the rest of the year. The Munich-based company said profits rose to 1.58 billion euros ($1.74 billion) from 1.31 billion euros in the year-earlier period, when the company had to deduct charges for the changed valuation of financial derivatives.