New book by Larry Connors Click here Improve your trading - See how
The Omaha, Nebraska-based company reported net earnings for the third quarter of $3.24 billion or $2087 per Class A share, compared to $1.06 billion or $682 per share Class A share for the year-ago quarter.
Berkshire had $1.18 billion of net gains from investments and derivatives in the third quarter, compared to loss of $1.01 billion in the prior year's third quarter. Derivative gains totaled $1.13 billion in the third quarter, compared to loss of $819 million in the third quarter of last year.
Excluding investment and derivative gains and losses, operating earnings for the third quarter were $2.06 billion or $1325 per Class A share, compared to $2.07 billion or $1335 per Class A share in the prior year quarter.
On average, 4 analysts polled by Thomson Reuters expected the company to earn $1308.25 per Class A share for the third quarter. Analysts' estimates typically exclude special items.
Total revenue for the third quarter increased 7% to $29.90 billion from $27.93 billion in the same quarter last year.
Insurance underwriting generated operating earnings of $363 million in the third quarter quarter, up from $81 million in the same quarter last year.
Insurance investment income for the quarter rose 21% to $976 million from $809 million a year ago.
Operating earnings from the company's non-insurance businesses fell 29% to $774 million in the third quarter from $1.08 billion last year.
During the third quarter, the company's book value increased 15.2% from the year-end and 10.1% from the last quarter to $81,247 per Class A share.
For the first nine months of the year, the company reported net earnings of $5.00 billion or $3223 per Class A share, compared to $4.88 billion or $3149 per Class A share for the same period last year.
Excluding investment and derivative gains and losses, operating earnings for the nine-month period were $5.54 billion or $3572 per Class A share, compared to $6.27 billion or $4048 per Class A share in the prior year period.
Revenue for the first-half fell to $82.30 billion from $83.19 billion in the year earlier period.
Berkshire Hathaway is a holding company owning subsidiaries that engage in a number of diverse business activities including property and casualty insurance and reinsurance, utilities and energy, finance, manufacturing, services and retailing.
The company has over 70 units with businesses as varied as insurance, restaurants, furniture, clothing, candy companies, natural gas and corporate jet leasing.
Berkshire also holds significant stakes in many top-notch companies such as Coca-Cola Co. (KO | Quote | Chart | News | PowerRating), Wells Fargo & Co. (WFC | Quote | Chart | News | PowerRating), Kraft Foods Inc. (KFT | Quote | Chart | News | PowerRating), Washington Post Co. (WPO | Quote | Chart | News | PowerRating), American Express Co. (AEP | Quote | Chart | News | PowerRating) and Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) among others. Berkshire is the largest shareholder of Wells Fargo, American Express and Coca-Cola.
Berkshire released its third quarter earnings three days after announcing the plan for the largest acquisition in its history. On November 3, the company said it has agreed to buy the remaining 77.4% of rail operator Burlington Northern Santa Fe Corp. (BNI | Quote | Chart | News | PowerRating) that it does not already own for $100 in cash and stock. Based upon the outstanding shares of Burlington not currently owned by Berkshire, the value of the aggregate consideration to acquire the remaining Burlington shares is about $26.4 billion of which about 60% will be paid in cash and 40% in Berkshire Class A and Class B Common Stock. The deal is expected to close in the first quarter of 2010.
Berkshire said in a regulatory filing on Friday that it expects to fund about 50% of the total cash consideration of about $16 billion with internally generated cash and the remainder with borrowings expected to be repaid over a three year period.
On November 3, Berkshire also announced that its Board of Directors approved a 50-for-1 split of its Class B common stock. Berkshire's Class A common stock is not being split.
Berkshire's Class A shares closed Friday's regular trading session at $102,400 up $500. The company's Class B shares closed the day's session at $3,425, up $3022.69 but lost $6 after hours trading.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
