Berkshire Hathaway revenues are down 3% in the third quarter of the fiscal year.
The operating result of the conglomerate holding company decreased by 32%.
Precision Castparts reported an 80% decline in pre-tax earnings.
In a report on Saturday, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) reported profits of £22.88 billion in the last quarter, compared to the previous year’s figure of £12.54 billion, which was much lower. The U.S. multinational attributed the profit to its investments, which grew to an estimated £18.85 billion in the third quarter. Berkshire holds substantial shares in Bank of America and Apple Inc.
In the year to date, Berkshire Hathaway’s Class A shares have fallen by almost 8% on the stock market, but have recovered by around 30% since the end of March when the effects of the coronavirus peaked.
Berkshire says that operating profit fell by 32% in the 3rd quarter.
In terms of operating income, Berkshire reported a 32% fall in the third quarter to £4.17 billion on an annualised basis, compared to £6.13 billion in the same quarter last year. On a per share basis (Class A), third quarter profit was £2,623.94 compared to £2,726.68 per share expected according to FactSet.
In terms of revenue, the Omaha-based company saw a 3% year-on-year decline in the third quarter to £47.90 billion. Berkshire bought £430.50 million worth of Barrick Gold shares in August.
Berkshire also said on Saturday that its railroad company BNSF saw third quarter profits fall by 8% to £1.03 billion as the ongoing COVID 19 crisis hit freight transport. Freight volumes, the company added, fell by 8% in the third quarter, after a much wider decline of 18% in the second quarter.
On the positive side, the Berkshire Utility reported an annualised profit growth of 18% to £1.06 billion.
Precision Castparts reported an 80% decline in pre-tax profit.
Other prominent figures in Saturday’s Berkshire Financial Report include an 80% decline in Precision Castparts pre-tax profit. In the previous quarter (Q2), Berkshire’s aircraft parts manufacturer had recorded a £7.60 billion write-down. The company now expects to reduce its workforce by 40% before the start of the new year to cushion the economic blow.
Berkshire estimated its share buyback in the third quarter at £6.84 billion, compared with a much lower figure of £3.88 billion in the second quarter. At the end of the third quarter the conglomerate holding company still had £110.74 billion in cash and short-term investments. Find out more about share buybacks.
At the time of writing this article, Berkshire Hathaway is valued at £379 billion and has a price-earnings ratio of 22.93.