Berkshire posts record operating profit, $35.9 billion of net income
(Reuters) -Berkshire Hathaway on Saturday posted its highest ever quarterly operating profit, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit.
Rising interest rates and dividend payouts, as well as a rebound in performance at the Geico car insurer, have been helping Berkshire's insurance businesses generate more money, with profit up 38% from a year earlier.
That helped offset declines at other businesses including the BNSF railroad, where lower shipments of consumer goods and increased price competition from the trucking industry contributed to a 24% drop in overall profit.
Investors closely watch Berkshire because of Buffett's reputation, and because results from the Omaha, Nebraska-based company's dozens of operating units often mirror broader economic trends.
Those units also include Berkshire's namesake energy company, several industrial companies, and familiar brands such as Dairy Queen, Duracell, Fruit of the Loom and See's Candies.
Operating profit rose 7% to $10.04 billion, or about $6,938 per Class A share, from $9.42 billion a year earlier.
Net income totaled $35.91 billion, or $24,775 per Class A share, compared with a year-earlier $43.62 billion loss.
Berkshire also said it had repurchased $1.4 billion of stock in the quarter.
It also remained a big net seller of stocks from its $353 billion equity portfolio — about half of which is Apple (NASDAQ:AAPL) — shedding about $8 billion more stocks than it bought.
That helped push Berkshire's cash stake up to $147.4 billion as of June 30 from $130.6 billion three months earlier.
Net results included $25.9 billion of largely unrealized gains from investments and derivatives.
Those
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