Berkshire Hathaway posts massive $43.8 bln loss; operating results improve

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(Adds monetary particulars all through)

Aug 6 (Reuters) – The slide in U.S. stock costs punished
Berkshire Hathaway Inc’s backside line within the second
quarter as the corporate run by billionaire Warren Buffett posted
a $43.8 billion loss.

Berkshire however posted higher operating results, as
improved results from reinsurance and the BNSF railroad offset a
loss from the Geico automobile insurer, the place automobile elements shortages and
larger automobile costs boosted losses on accident claims.

Rising rates of interest helped Berkshire’s insurance coverage items
generate extra money from investments, whereas the strengthening
U.S. greenback boosted revenue from the corporate’s European and
Japanese debt investments.

Investors intently watch Berkshire due to Buffett’s
repute, and since results from its dozens of operating
items within the insurance coverage, railroad manufacturing, vitality and
retail sectors typically mirror broader financial developments.

Berkshire’s internet loss was equal to $29,754 per Class A share,
and in contrast with a internet revenue of $28.1 billion, or $18,488 per
Class A share, a 12 months earlier.

Quarterly operating revenue rose 39% to $9.28 billion, or
about $6,326 per Class A share, from $6.69 billion, or $4,424
per Class A share, a 12 months earlier.

Berkshire slowed repurchases of its personal stock, shopping for again
$1 billion within the quarter and $4.2 billion thus far this 12 months.

It additionally purchased greater than $6.1 billion of shares, down from
$51.1 billion within the first quarter, when it took main stakes in
oil corporations Chevron Corp and Occidental Petroleum Corp
.

Berkshire ended June with $105.4 billion of money and
equivalents. It expects to finish its $11.6 billion takeover
of insurance coverage firm Alleghany Corp within the fourth quarter.

Net results swing wildly as a result of the Omaha, Nebraska-based
conglomerate should report funding positive factors and losses on its
stock holdings even when it buys and sells nothing.

That proved a drag within the second quarter, as Berkshire
recorded $53 billion of losses from investments and derivatives.

The shares of three main holdings — Apple Inc ,
Bank of America Corp and American Express Co
every fell greater than 21%.

Buffett urges buyers to disregard the fluctuations, and
Berkshire will make money if shares rise over time.

In 2020, for instance, Berkshire misplaced almost $50 billion in
the primary quarter because the COVID-19 pandemic took maintain, however made
$42.5 billion for the complete 12 months.

Berkshire owns dozens of companies that additionally embody its
namesake vitality operations, a number of manufacturing corporations, and
shopper corporations equivalent to Duracell batteries, Fruit of the Loom
underwear and See’s Candies.

The firm’s shares have outperformed the broader U.S.
market in 2022, falling 2% in contrast with a 13% drop within the
Standard & Poor’s 500.

(Reporting by Jonathan Stempel in New York; modifying by Jason
Neely and Diane Craft)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.internet))

Keywords: BERKSHIRE RESULTS/ (UPDATE 2, PIX)

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.



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