Warren Buffett’s Berkshire Hathaway (BRK.a), (BRK.b) earned $3.63 billion in the first quarter compared to a net loss of $1.53 billion in the year ago period. All the improvement was in the conglomerate’s operating profits which went from $1.7 billion last year to $2.2 billion, up 30%, in the most recent quarter, reversing a year-ago loss of $3.2 billion.
Speaking to a packed auditorium of some 40,000 investors at Berkshire’s annual shareholders meeting, Mr. Buffett said the company’s preliminary first-quarter results show that the global economy is showing significant signs of recovery for the first time.
WSJ: “What was sort of a sputtering recovery months ago seemed to pick up steam in March and April,” Mr. Buffett said. “We’re seeing a pretty good uptick.”
Buffet also said in relation to earnings that the acquisition of Burlington Northern (BNI) helped push profits in the company’s regulated business unit to $555 million in the January-March period. The investment and derivative portion of earning was $1.41 billion compared to ($3.2) billion last year.
Here is Berkshire’s preliminary first quarter after-ax earnings summary: [via Business Wire]
Berkshire Hathaway Inc.
P
Preliminary First Quarter After-Tax Earnings
(in millions)
2 2
010 009
--------- ----------
Insurance - underwriting $ 226 $ 202
Insurance - investment income 938 1,004
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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 )
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