Monday, January 26th0.9°C
24779
24277

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

24811


Recent Trending




Today's Market
S&P TSX14781.17+1.82
S&P CDNX673.35-4.83
DJIA17659.34-13.26
Nasdaq4758.958+1.079
S&P 5002052.00+0.18
CDN Dollar0.8053+0.0013
Gold1290.60-2.00
Oil46.35-2.34
Lumber315.40+3.90
Natural Gas2.943-0.043

 
Okanagan Companies
Pacific Safety0.125+0.01
Knighthawk0.010.00
QHR Technologies Inc1.39+0.01
Cantex0.035+0.005
Anavex Life Sciences0.185+0.004
Metalex Ventures0.040.00
Russel Metals24.51+0.03
Copper Mountain Mining1.11+0.01
Colorado Resources0.15-0.005
ReliaBrand Inc0.006+0.001
Sunrise Resources Ltd0.055+0.03
Mission Ready Services0.22+0.02

 



24497

FEATURED Property
2115192#401 - 770 Rutland Road
1 bedrooms 1 baths
$185,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...


Ailing Parents: Tax Issues

If your parent has become ill, there can be several tax issues that come into play depending on the nature of their illness, their age and the role that family members are playing. For example, if you...


What do I pay ICBC for anyway?

If you have had ongoing dealings with ICBC as a result of a car accident than you have likely had the pleasure of dealing with at least two sides of ICBC. Initially the relationship starts off pleasan...

_





24709


Member of BC Press Council


23646