Investing

Berkshire Hathaway Swings To Big Profit

Berkshire Hathaway (NYSE: BRK.B, BRK.A) announced it made $3.6 billion in the first quarter compared to a loss of $1.5 billion in the year ago period. All of the improvement was in the company’s operating earnings which went from $1.7 billion last year to $2.2 billion in the most recent quarter.

The company also had a profit in its investment portfolio and in the part of the financial statement that reflects derivative losses and gains.

The investment and derivative portion of earning was $1.4 billion compared to $3.3 billion last year, during the credit crisis and March 2009 market sell-off

Berkshire Hathaway Inc.
Preliminary First Quarter After-Tax Earnings
(in millions)
2010
2009
Insurance – underwriting $ 226 $ 202
Insurance – investment income 938 1,004
Total insurance 1,164 1,206
Regulated businesses 555 268
Manufacturing, service & retailing 477 258
Finance 69 68
Other (43 ) (95 )
Operating earnings 2,222 1,705
Investment and derivative gains/losses 1,411 (3,239 )
Net earnings $ 3,633 $ (1,534 )

Douglas A. McIntyre