Earnings of Berkshire Hathaway BRK in the second quarter of 2021


Warren Buffett at the annual meeting of Berkshire Hathaway in Los Angeles, California. May 1, 2021

Gerard Miller | CNBC

Berkshire HathawayRussia’s operating revenues continued to recover because its countless companies from energy to railways benefited from the reopening of the economy.

The conglomerate reported operating earnings of $ 6.69 billion in the second quarter, up 21% from $ 5.51 billion in the same period last year, according to a earnings report released Saturday.

Total earnings, reflecting Berkshire’s volatile equity investments, rose 6.8% year-over-year to $ 28 billion in the second quarter.

President and CEO Warren Buffett continued to aggressively buy back Berkshire shares instead of large purchases. The company repurchased $ 6 billion of treasury shares in the second quarter, bringing the total six-month amount to $ 12.6 billion. Berkshire bought a record $ 24.7 billion in treasury shares last year.

At the end of June, Berkshire’s cash pile was $ 144.1 billion, staying stable from last quarter and still close to a record despite the company’s major buyout program.

The results came when conglomerate shares erased all losses in 2020 and reached a record high in that period. So far in the third quarter, Berkshire shares B. have increased by another 2%, bringing their annual profit to more than 23%.

As economic activity continues to revive following a pandemic with more goods and goods shipped across the country, Berkshire’s Burlington Northern Santa Fe Railroad is benefiting. Earnings for railways, utilities and energy jumped more than 27% from last year in that period to $ 2.26 billion, Berkshire said. Other conglomerate jobs, including house builders and painters, are also growing.

Although Berkshire has admitted that the quarterly results look great as they are recovering from a low base a year ago, the company is not sure when the results will really return to normal.

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“The COVID-19 pandemic negatively affected almost all of our operations during 2020, and especially in the second quarter, although the effects varied significantly,” Berkshire said in a earnings report on Saturday. “The extent of the long-term effects cannot currently be reasonably estimated.”

At the height of the Covid crisis, Berkshire experienced a drastic slowdown, with operating revenues falling 10% year on year in the second quarter of 2020, and stumbled 30% in the third quarter.

Berkshire said the risks of a pandemic remain and could affect its results in the future.

“Risks and uncertainties arising from the pandemic that may affect our future earnings, cash flows and financial condition include the possibility of vaccinating a significant number of people in the U.S. and around the world, as well as the long-term impact of the pandemic on demand for certain of our products and services.” is from a conglomerate.

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