Business

Berkshire posts higher profit on railroad, utilities and energy operations

Warren Buffett’s Berkshire Hathaway Inc. mentioned Saturday that second-quarter internet earnings rose 7%, boosted by improved outcomes for its railroad, utilities and vitality corporations.

Berkshire
BRK.B,
+1.93%

BRK.A,
+2.10%

reported second-quarter internet earnings of $28.1 billion, or $18,488 per Class A share equal, in contrast with a revenue of $26.3 billion, or $16,314 per Class A share equal, within the year-earlier interval.

Working earnings, which exclude some funding outcomes, rose to $6.7 billion from $5.5 billion within the yr prior. Income elevated throughout the firm’s railroad, utilities and vitality divisions however declined on the firm’s huge insurance coverage operations.

The corporate mentioned that earnings for many of its manufacturing, service and retailing companies declined significantly final yr due to the coronavirus pandemic, however over the second half of 2020 and into 2021, a lot of its companies have recovered and in some instances, now exceed pre-pandemic ranges.

The conglomerate runs a big insurance coverage operation in addition to a railroad, utilities, industrial producers, retailers and even auto dealerships. It additionally holds giant investments, particularly within the inventory market. An accounting rule change in recent times has meant that Berkshire’s earnings usually replicate the bigger efficiency of the inventory market, whereas working earnings extra precisely replicate the agency’s giant enterprise operations.

Regardless of a fame for occasionally both buying corporations outright or making direct loans throughout all these instances in markets, Buffett’s agency was largely silent for a lot of the pandemic. The agency’s largest deal got here in the midst of final yr when Berkshire introduced an settlement to purchase Dominion Vitality’s midstream vitality enterprise for $9.7 billion together with debt.

One space Buffett has been lively is in shopping for again Berkshire inventory. Final yr, Berkshire purchased again practically $25 billion in shares after refusing to purchase again firm inventory for a lot of the previous few a long time. On Saturday, Berkshire disclosed that it paid about $6 billion to buy shares within the second quarter and has spent $12.6 billion within the first six months of 2021 to repurchase its shares.

Berkshire held $144.1 billion in money on the finish of the second quarter, down from about $145.4 billion in money on the finish of the primary quarter.

Class A shares closed Friday up 2.1% at $430,160. The shares are up greater than 20% for the yr.

An expanded version of this story appears on WSJ.com.

https://www.marketwatch.com/story/berkshire-posts-higher-profit-on-railroad-utilities-and-energy-operations-11628342806?rss=1&siteid=rss | Berkshire posts increased revenue on railroad, utilities and vitality operations

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