Berkshire Hathaway's Profit Jumps as Market Rebound Boosts Results
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
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
Write to Geoffrey Rogow at firstname.lastname@example.org
(END) Dow Jones Newswires
August 08, 2020 08:49 ET (12:49 GMT)
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