Berkshire Hathaway 2nd Quarter Earnings

Berkshire Hathaway reported their 2014 2nd Quarter Earnings on Friday afternoon.

Key Points:

Revenues: $49.8 Billion, up 11% (vs. 2Q of 2013)
Earnings: $6.4 Billion ($3,889 per BRK-A share), up 41% (vs. 2Q of 2013)
Book Value: $142,483 per BRK-A Share, up 5.6% (from the end of 2013)

Berkshire Profit Jumps 41% to Record on Buffett’s Bets (Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. posted second-quarter profit that beat analysts’ estimates as results improved at operating businesses including auto insurer Geico, railroad BNSF and the energy unit.

Net income surged 41 percent to a record $6.4 billion on gains from an asset swap with the former Washington Post publisher, Buffett’s Omaha, Nebraska-based company said yesterday in a statement. Operating earnings, which exclude some investment results, were $2,634 a share, compared with the $2,482 estimate of three analysts surveyed by Bloomberg.

Berkshire profit soars 41 pct to a record on investment gains (Reuters)

Results included $1.96 billion of investment gains. Berkshire shed $2.86 billion of equities in the quarter, including a swap of a 40-year investment in former Washington Post publisher Graham Holdings Co. [...]

Profit grew 29 percent from manufacturing, service and retail operations, such as Berkshire's Lubrizol chemicals and Forest River recreational vehicle units.

Pre-tax profit doubled in apparel, helped by lower manufacturing and pension costs at Fruit of the Loom.

Profit also increased 34 percent in energy and utilities, largely reflecting a year-end purchase of Nevada's NV Energy.

BNSF Railway's profit grew 4 percent, but Berkshire expressed disappointment, saying, "Service levels continued to be well below our internal standards, as well as those expected by our customers."

Many insurance businesses also posted improved results, with larger underwriting gains from Geico auto insurance and General Re reinsurance, and in a business that provides commercial and worker's compensation insurance.

The insurance results were hurt by a small underwriting loss in a business that insures against major catastrophes, which Berkshire attributed mainly to currency fluctuations. [...]

Berkshire's cash stake surged to $55.46 billion from $48.95 billion at the end of March.