Berkshire Hathaway's first-quarter profit more than doubled, reaching $10.1 billion, as the value of its investments improved and most of its businesses reported higher earnings. The conglomerate released its earnings report on Saturday, just as thousands of shareholders gathered in Omaha, Nebraska, for the annual meeting.
Earnings Highlights
Berkshire reported earnings of $10.1 billion, or $7,027 per Class A share, a significant increase from $4.6 billion, or $3,200 per Class A share, in the same period last year. The paper value of Berkshire's investments had a major impact on its bottom line, even though the company has not sold most of its stocks. However, it recorded a $5.8 billion gain on stocks it did sell during the quarter. The value of the overall portfolio slipped to just over $288 billion.
Berkshire's massive cash pile continued to grow, reaching $397.4 billion at the end of the first quarter. Warren Buffett has long encouraged investors to focus on operating earnings, which exclude investment gains and losses, to get a clearer picture of the company's performance. Operating earnings grew to $11.3 billion, or $7,889.44 per Class A share, up from $9.6 billion, or $6,703.41 per Class A share, last year. Analysts surveyed by FactSet Research had predicted operating earnings of $7,611.35 per Class A share.
Currency and Business Performance
Berkshire's profits received a $249 million boost from its foreign currency holdings due to exchange rate movements. A year ago, the company recorded a $713 million loss on foreign currencies. Most of Berkshire's varied businesses reported better operating earnings this year. The insurance unit, which includes Geico and several other companies, reported an underwriting profit of $1.7 billion, up from $1.34 billion last year. Profits also grew at BNSF railroad and Berkshire's utility and manufacturing companies.
Annual Meeting Changes
This year's annual meeting is the first that Buffett will not lead from the stage, following the promotion of Greg Abel to CEO in January. Attendance at the meeting is expected to be somewhat lower this year.
