Berkshire Hathaway speeds up stock buybacks, though profit falls
Berkshire Hathaway repurchased $9.6 billion of its stock in the third quarter and about $2 billion in October. Third-quarter operating earnings fell 6% to $12.71 billion, while net earnings declined 28% to $22.11 billion.
1. Buybacks and cash
Berkshire Hathaway repurchased $9.6 billion of its stock from July through September and about $2 billion more in October, in addition to $4.8 billion earlier in the year. Cash and equivalents stood at $356.9 billion at the end of September, down from $380.2 billion six months earlier.
2. Quarterly results
Third-quarter operating earnings fell 6% to $12.71 billion, or about $8,954 per Class A share, while net earnings fell 28% to $22.11 billion. Insurance profit declined 26%, including a 45% drop in Geico pretax profit. Revenue rose 11% to $105.65 billion.
3. Business performance
BNSF profit rose 19%, Berkshire Hathaway Energy profit rose 8%, and Precision Castparts pretax profit increased 30%. Berkshire said considerable uncertainty remains around economic and geopolitical events, and that several retail businesses are experiencing sluggish demand.
