AGL 37.62 Decreased By ▼ -0.53 (-1.39%)
AIRLINK 122.00 Increased By ▲ 0.49 (0.4%)
BOP 5.72 Decreased By ▼ -0.13 (-2.22%)
CNERGY 3.71 Decreased By ▼ -0.04 (-1.07%)
DCL 8.32 Decreased By ▼ -0.08 (-0.95%)
DFML 40.72 Decreased By ▼ -0.17 (-0.42%)
DGKC 84.60 No Change ▼ 0.00 (0%)
FCCL 33.25 Increased By ▲ 0.55 (1.68%)
FFBL 65.50 No Change ▼ 0.00 (0%)
FFL 9.92 Decreased By ▼ -0.13 (-1.29%)
HUBC 103.79 Decreased By ▼ -0.01 (-0.01%)
HUMNL 13.23 Decreased By ▼ -0.02 (-0.15%)
KEL 4.41 Decreased By ▼ -0.02 (-0.45%)
KOSM 7.05 Decreased By ▼ -0.04 (-0.56%)
MLCF 37.70 Increased By ▲ 0.20 (0.53%)
NBP 59.86 Decreased By ▼ -0.39 (-0.65%)
OGDC 175.19 Increased By ▲ 2.94 (1.71%)
PAEL 24.85 Increased By ▲ 0.05 (0.2%)
PIBTL 5.73 Increased By ▲ 0.03 (0.53%)
PPL 145.97 Increased By ▲ 4.28 (3.02%)
PRL 22.77 Increased By ▲ 0.05 (0.22%)
PTC 14.97 Increased By ▲ 0.23 (1.56%)
SEARL 65.14 Increased By ▲ 0.58 (0.9%)
TELE 7.04 Decreased By ▼ -0.10 (-1.4%)
TOMCL 35.65 Increased By ▲ 0.15 (0.42%)
TPLP 7.32 Increased By ▲ 0.03 (0.41%)
TREET 13.95 Decreased By ▼ -0.25 (-1.76%)
TRG 50.90 Decreased By ▼ -0.85 (-1.64%)
UNITY 26.40 Decreased By ▼ -0.20 (-0.75%)
WTL 1.22 No Change ▼ 0.00 (0%)
BR100 9,543 Increased By 59.5 (0.63%)
BR30 28,579 Increased By 208.3 (0.73%)
KSE100 89,476 Increased By 509.4 (0.57%)
KSE30 27,943 Increased By 115.8 (0.42%)

Warren Buffett's Berkshire Hathaway Inc on Friday said quarterly profit rose nearly 51 percent on a solid performance in insurance and by many of its other businesses, as well as gains from investments and derivatives. The results topped expectations and were released after Berkshire shares closed at a record high.
Berkshire's more than 80 businesses are benefiting from a strengthening economy, as illustrated by increased traffic on its Burlington Northern railroad unit, new customers for its McLane food distribution business, and stepped-up demand for its Forest River recreational vehicles, to name just a few. Profit from insurance operations, including the Geico car insurance unit and a business that provides protection against major catastrophes, roughly doubled.
"The happy fact right now is that the growth areas in the economy are right in Berkshire's wheelhouse," said Jeff Matthews, founder of the RAM Partners LP hedge fund and author of "Pilgrimage to Warren Buffett's Omaha." Net income increased to $4.89 billion, or $2,977 per Class A share, from $3.25 billion, or $1,966 per share, a year earlier. Quarterly operating profit rose 42 percent to $3.78 billion, or $2,302 per share, from $2.67 billion, or $1,615 per share.
Analysts on average expected profit of $1,996 per share, according to Thomson Reuters I/B/E/S. Book value per share, Buffett's preferred measure of growth, increased 5.5 percent from year end to $120,525 per Class A share, and Berkshire's cash stake grew over that period to $49.09 billion from $46.99 billion. About $12.1 billion is being used to fund a purchase by Berkshire and Brazilian investment firm 3G Capital of ketchup maker H.J. Heinz Co Revenue rose 15 percent from a year ago to $43.87 billion.
Operating profit from insurance operations rose to $1.7 billion from $845 million. Nearly all the improvement came from underwriting, where profit rose to $901 million from $54 million, in part because of a $255 million pre-tax reinsurance gain, as well as currency fluctuations. Underwriting profit at Geico more than doubled. "The backbone of Berkshire is its world class collection of insurance companies," said David Rolfe, chief investment officer at Wedgewood Partners Inc, which invests 6.5 percent of its $4 billion of assets in Berkshire stock.
Operating profit from noninsurance business rose 12 percent to $2.25 billion. This included increases of 14 percent at Burlington Northern to $798 million, and a little over 10 percent from manufacturing, service and retail operations to $944 million. Profit generated by MidAmerican Energy, a utility unit that Berkshire owns most of, rose 17 percent to $394 million.
Investment and derivatives gains nearly doubled to $1.11 billion, in part because of gains related to Berkshire's warrants for General Electric Co and Goldman Sachs Group Inc. In Friday trading, Berkshire Class A shares closed up $1,993, or 1.2 percent, at $162,850. Its Class B shares closed up $1.34, or 1.2 percent, at $108.64.

Copyright Reuters, 2013

Comments

Comments are closed.