Monday, December 22nd0.2°C
24563
23088

Buffett's company's profit up 10%

Warren Buffett's company said Saturday that fourth-quarter earnings rose 10 per cent to nearly $5 billion as its insurance, rail and energy businesses generated major gains in the improving economy.

Berkshire Hathaway's insurance companies, which include Geico and General Reinsurance, reported a $394 million underwriting profit for the final three months of 2013, compared with a $19 million loss a year earlier. The Omaha, Neb., company also benefited from the strong performance of its non-insurance companies including BNSF railroad and electric utility MidAmerican Energy.

Berkshire Hathaway Inc. owns roughly 80 subsidiaries, including railroad, clothing, furniture and jewelry firms. Its insurance and utility businesses typically account for more than half of the company's net income. The company also has major investments in such companies as Coca-Cola Co., IBM and Wells Fargo & Co., and last year bought NV Energy and a major stake in H.J. Heinz.

Berkshire's fourth-quarter report and Buffett's annual letter to shareholders released Saturday show the company doesn't face any significant business issues in the coming year, said author and investor Jeff Matthews, who wrote "Warren Buffett's Successor: Who It Is and Why It Matters."

"Life is good at Berkshire Hathaway," Matthews said Saturday.

Quarterly net income rose to $4.99 billion on revenue of $47.05 billion from $4.55 billion on revenue of $44.72 billion in 2012. Buffett has said he thinks operating earnings are a better measure of how Berkshire is performing because they aren't affected by swings in the paper value of investments and derivatives. Operating earnings, which exclude investments and derivatives, grew to $3.78 billion, or $2,297 per Class A share.

Berkshire earned $19.48 billion for 2013 on total revenue of $182.15 billion. That's up from $14.82 billion in profit and revenue of $162.46 billion in 2012. Strong gains in the value of its investments and derivative contracts added $4.3 billion to the results, up from $2.2 billion the previous year. That included gains Berkshire recorded last fall as it redeemed warrants for General Electric and Goldman Sachs stock and Mars and Wrigley repaid Berkshire for an investment made during the financial crisis.

The Canadian Press


Read more Business News

24588


Recent Trending




Today's Market
S&P TSX14447.19-21.069
S&P CDNX672.16-4.38
DJIA17901.0096.20
Nasdaq4765.684+0.304
S&P 5002070.47-0.18
CDN Dollar0.8589-0.0028
Gold1189.40-6.50
Oil56.50+2.39
Lumber337.70-0.30
Natural Gas3.169-0.295

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.21-0.04
Cantex0.03-0.005
Anavex Life Sciences0.1712-0.0014
Metalex Ventures0.05-0.005
Russel Metals25.17-0.41
Copper Mountain Mining1.57+0.02
Colorado Resources0.11-0.01
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.02-0.03
Mission Ready Services0.23+0.015

 
23744


23015

FEATURED Property
20134751138 Gregory Road
5 bedrooms 4 baths
$1,395,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


First-time homebuyer mistakes

If you’re on the hunt for your first home and want to have a smooth and successful home purchasing experience avoid these common first-time homebuying mistakes.If you are looking for your first ...


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...

_



24111

24111


Member of BC Press Council


22707