Warren Buffett’s Berkshire Hathaway Inc. said second-quarter net earnings rose 7%, boosted by improved results for its railroad, utilities and energy companies.
Berkshire reported second-quarter net earnings of $28.1 billion, or $18,488 per Class A share equivalent, compared with a profit of $26.3 billion, or $16,314 per Class A share equivalent, in the year-earlier period.
Operating earnings, which exclude some investment results, rose to $6.7 billion from $5.5 billion in the year prior. Profits increased within the company’s railroad, utilities and energy divisions but declined at the company’s vast insurance operations.
The company said that earnings for most of its manufacturing, service and retailing businesses declined considerably last year thanks to the coronavirus pandemic. But over the second half of 2020 and into 2021, many of its businesses have recovered and in some cases, even now exceed pre-pandemic levels.
The conglomerate runs a large insurance operation as well as a railroad, utilities, industrial manufacturers, retailers and even auto dealerships. It also holds large investments, especially in the stock market. An accounting rule change in recent years has meant that Berkshire’s earnings often reflect the larger performance of the stock market, while operating earnings more accurately reflect the firm’s large business operations.
