Investing.com — reported an 18% rise in first-quarter operating earnings on Saturday, the first results under new chief executive Greg Abel, who took the reins from Warren Buffett at the start of the year.
Operating earnings rose to $11.35 billion from $9.64 billion a year earlier.
The company’s cash pile swelled to a record $397.38 billion, reflecting the conglomerate’s continued difficulty finding acquisitions that meet its value-oriented standards.
The company repurchased $234 million of its own stock during the quarter — its first buybacks since May 2024 — though it conducted no repurchases in the first two weeks of April.
Berkshire’s holdings span a wide range of businesses, including Geico, BNSF railroad, Berkshire Hathaway Energy, Dairy Queen and See’s Candies.
Insurance profit rose 4% to $4.4 billion, an improvement from a year earlier when Southern California wildfires weighed on reinsurance and other insurance units. The gain came despite a 35% drop in pre-tax underwriting profit at Geico, where accident claims and marketing costs both climbed.
BNSF posted a 13% rise in profit to $1.38 billion, lifted by stronger demand for grain, petroleum fuels, oilseeds and meals. Berkshire Hathaway Energy edged up 2%, as robust natural gas pipeline revenue tied to cold weather helped offset higher maintenance and wildfire prevention costs in its utility operations.
Profit from manufacturing, service and retail businesses rose 5% to $3.2 billion.
The results came ahead of Berkshire’s annual meeting on Saturday, with shareholders looking to learn how the conglomerate built by Warren Buffett can grow and reverse its stock’s steep underperformance.
Shares in Berkshire fell roughly 6% this year, underperforming the broader market.
Abel had been Buffett’s designated successor since 2021, though the timing of the handover came as a surprise. The 95-year-old Buffett is watching the event from the audience as Abel and other executives address shareholders and take questions at an arena in downtown Omaha, Nebraska.
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Source:
www.investing.com