Saturday, December 15th 2018

Berkshire Hathaway (NYSE:BRK) Profitable in First Quarter

Saturday, May 1st, 2010

Berkshire Hathaway (NYSE:BRK) recorded a solid first quarter with profits of $3.63 billion, in contrast to last year's net loss of $1.5 billion during the same quarter.

Operating earnings increased from $1.7 billion last year to $2.2 billion this year, a 30 percent gain.

The company was led by gains in investments and derivatives where they scored a $1.4 billion rise this year, a huge improvement over the $3.2 billion in losses incurred last year in those segments.

CEO Warren Buffett added that the economy improved some in March and April, adding to the performance for the quarter.

The addition of Burlington Northern Santa Fe to the Berkshire fold has already started paying benefits, which Buffett said at the shareholders meeting that “we are seeing an uptick” in those industries like railroads which serve broader markets.

This was also a move by Buffett to diversify the holdings of Berkshire which had been so dependent on insurance and mortgage-related businesses in the past. Insurance will of course continue to be the underpinning of Berkshire, but it is a good sign to see the additional strength Burlington will give them.

Other areas of the company doing well, included the utility and energy units of the company, which also include their railroad properties, which generated $555 million in profits and the manufacturing, service and retail businesses surged by 85 percent to $477 million. 

Buffett is looking for the residential real estate market to turnaround sometime in 2011.

Article by Gary B

The views expressed are the subjective opinion of the article's author and not of

Follow financeadvisory on Twitter


Tags: berkshire hathaway, derivatives, quarterly report, warren buffett

Related Articles
Warren Buffet Weighs in on Status of Economic Recovery, Lubrizol and David Sokol
Berkshire Hathaway Inc. Doubles Combined Profit in 2010, Looking for Acquisitions
CME Group Making Bid for NYSE?
Deutsche Boerse, NYSE Merger Hits Snags
Warren Buffett to Get Grilled About Goldman Sachs (NYSE:GS) at Berkshire Hathaway (NYSE:BRK) Shareholder Meeting
Dun & Bradstreet (NYSE:DNB) Profits Drop but Beat First-quarter Estimates
Are Caterpillar's (NYSE:CAT) Profits Sustainable after Revenue Decline?
Berkshire Hathaway (NYSE:BRK-A) Looking at Real Estate Sector
Wal-Mart (NYSE:WMT) Overtaken by Apple (NASDAQ:AAPL) As Third-Largest American Company
Berkshire Hathaway Inc. (BRK.A) Continues on Top after 45 Years
NYSE Euronext (NYSE:NYX) CEO Looking to Derivatives for Revenue Growth
AIG (NYSE:AIG) May Want Even More Taxpayer Money after Fourth Quarter Results
Warren Buffett Says Residential Real Estate Rebound in 2011
Warren Buffett Chastises Himself in $50 Million Berkshire Hathaway (NYSE:BRK-A) Loss Via Geico
Post a Comment



Enter Verification Number:*

Give Your Opinion
What is tax accounting?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is tax accounting?
Financial Questions & Answers
Ask A Question
Get opinions on what you want to know:
Specific to any country?