Berkshire Hathaway Inc. Doubles Combined Profit in 2010, Looking for Acquisitions
Saturday, February 26th, 2011
Many regard the prosperity of Berkshire Hathaway as a broader indication of the overall economic status of the US economy. If you subscribe to this theory, the economy is not only rebounding, it’s flourishing. The manufacturing, service, and retailing operations for Berkshire Hathaway earned the company nearly $2.5 billion last year. This doubles the combined profit for 2009.
Warren Buffet, Berkshire Hathaway Chairman, stated that the company anticipates that as the general economic strength of the US economy will continue. The company owns a basket of over 80 businesses range from specializing in the manufacturing of underwear, jewelry, and machine parts. Additionally, the company owns a railway, a car insurance company, a private jet business, power plants, and natural gas pipelines. According to the Wall Street Journal, the company is the fifth largest by market capitalization.
The figures cited by Warren Buffet indicated that revenue has increased by 41 percent in their Israel based company Iscar, a metal tool manufacturer that specializes in manufacturing specialized products tailored to manufacturing companies. Another company named CTB International, which manufactures agricultural equipment, increased revenue by 20 percent. Additionally, another Berkshire Hathaway-owned company specializing in commercial roofing named Johns Manville reported increased revenue of 12 percent. Other companies reporting revenue jumps were, TTI, and electronics parts distributor, and Burlington Northern Santa Fe, the railroad Berkshire Hathaway obtained in 2010.
Mr. Buffet indicated that increased revenue from the railroad Berkshire Hathaway owns was especially encouraging. He indicated that the railroads are often a metric for turns in the overall economy. On the whole, the Association of American Railroads reports that the total loads on US railroads was up by 7.3 percent last year in comparison to 2009. This is the largest increase the Association has reported since 1988 when it began collecting data.
Article by Andrew Timm
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: acquisition , berkshire hathaway , profits
• Warren Buffet Weighs in on Status of Economic Recovery, Lubrizol and David Sokol
• Ford Posts Best First Quarter Profits in 13 Years
• Tech Stocks Down, Dell is Outlier
• Seahawk Files for Bankruptcy, Acquired by Hercules
• 54 Percent Gains in Profit for Disney in the First Quarter
• Berkshire Hathaway (NYSE:BRK) Profitable in First Quarter
• Margins and Pricing Power Under Pressure in Many Industries
• Berkshire Hathaway (NYSE:BRK-A) Looking at Real Estate Sector
• Berkshire Hathaway Inc. (BRK.A) Continues on Top after 45 Years
• Warren Buffett Says Residential Real Estate Rebound in 2011
• Warren Buffett Chastises Himself in $50 Million Berkshire Hathaway (NYSE:BRK-A) Loss Via Geico
• What is a subprime lender?
• What is a holiday loan?
• Where to get a car insurance quote?
• What happens to interest rates in a rece...
• How much do criminal lawyers cost?
• What are the different types of cds avai...
• What are Interest free days?
• What is trade finance?