Berkshire Hathaway earnings jump ahead of Buffett’s CEO exit
Warren Buffett’s Berkshire Hathaway reported a 17% rise in quarterly profits, helped by a mild hurricane season and higher paper investment gains, as the 95-year-old investor readies to hand over the CEO role in January.
Berkshire’s shares (BRK-A, BRK-B) climbed more than 1% in premarket trading Monday after the company said it earned $30.8 billion, or $21,413 per Class A share, up from $26.3 billion a year ago, News.Az reports, citing AP.
The company’s operating profit — a key measure watched by Buffett — surged to $13.49 billion from $10.09 billion, driven by a strong rebound in its insurance businesses such as Geico.
The result far exceeded analysts’ expectations of $8,573 per share in operating earnings, according to FactSet Research. Revenue grew 2% to $94.97 billion.
Despite the gains, some sectors underperformed. Utilities profits fell nearly 9% to $1.49 billion, and retail brands including Fruit of the Loom, Duracell, Forest River RVs, and Squishmallows maker Jazwares saw weaker sales amid soft consumer confidence.
Buffett’s company ended September with a record $381.7 billion cash pile, even after its $9.7 billion investment in OxyChem — Berkshire’s largest deal in years. The legendary investor will remain chairman after Vice Chair Greg Abel assumes the CEO role in January.
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