Berkshire Hathaway's Profit Jumps as Market Rebound Boosts Results
August 08 2020 - 9:04AM
Dow Jones News
By Geoffrey Rogow
Warren Buffett's Berkshire Hathaway Inc. said its second-quarter
earnings surged 86%, as a rebound in the stock market offset a
profit decline in the company's operations and a large write-down
for Precision Castparts Corp.
Berkshire reported second-quarter net earnings of $26.3 billion,
or $16,314 per Class A share equivalent, from $14.1 billion, or
$8,608 per Class A share equivalent, in the year-earlier
period.
Operating earnings, which exclude some investment results, fell
to $5.5 billion from $6.1 billion in the year prior. Profits
increased within the company's vast insurance operations,
especially underwriting, while railroad, utilities and energy, and
other businesses declined.
Berkshire took a $9.8 billion write-down for Precision Castparts
in the quarter. Berkshire bought Precision Castparts for about $32
billion in 2016. The company, which supplies parts for aircraft
makers and makes equipment for power stations and the oil-and-gas
industry, has been hurt by the coronavirus pandemic.
Berkshire runs a large insurance operation as well as railroad,
utilities, industrial manufacturers, retailers and even auto
dealerships. It also holds large investments, especially in the
stock market.
Write to Geoffrey Rogow at geoffrey.rogow@wsj.com
(END) Dow Jones Newswires
August 08, 2020 08:49 ET (12:49 GMT)
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