MNeagle
1st May 2010, 08:17 AM
By Andrew Frye
May 1 (Bloomberg) -- Berkshire Hathaway Inc. swung to a profit in the first quarter as rising markets increased the value of investments, and a recovering economy boosted results at industrial operations.
Net earnings were about $3.63 billion, according to a slide posted by Chairman Warren Buffett today at Berkshire’s annual meeting of shareholders in Omaha, Nebraska. The net loss was about $1.5 billion in the first three months 2009, according to a statement from Berkshire last year.
The economy “picked up steam in March and April,†Buffett said. That followed “sort of a sputtering recovery a few months ago,†he said.
Berkshire bought railroad Burlington Northern Santa Fe Corp. for about $27 billion in February in Buffett’s biggest acquisition, a deal he called an “all-in wager†on the U.S. economy. The purchase will reduce Berkshire’s reliance on insurance operations and the housing-related businesses that faltered in the recession.
In businesses that serve broad industries, like railroads, “we are seeing an uptick,†Buffett said.
Berkshire results in the first quarter included a gain of about $1.4 billion on derivatives and investments compared with a loss of about $3.2 billion on the holdings in the year earlier.
http://www.bloomberg.com/apps/news?pid=20601087&sid=akK27ZtzOFc0&pos=3
May 1 (Bloomberg) -- Berkshire Hathaway Inc. swung to a profit in the first quarter as rising markets increased the value of investments, and a recovering economy boosted results at industrial operations.
Net earnings were about $3.63 billion, according to a slide posted by Chairman Warren Buffett today at Berkshire’s annual meeting of shareholders in Omaha, Nebraska. The net loss was about $1.5 billion in the first three months 2009, according to a statement from Berkshire last year.
The economy “picked up steam in March and April,†Buffett said. That followed “sort of a sputtering recovery a few months ago,†he said.
Berkshire bought railroad Burlington Northern Santa Fe Corp. for about $27 billion in February in Buffett’s biggest acquisition, a deal he called an “all-in wager†on the U.S. economy. The purchase will reduce Berkshire’s reliance on insurance operations and the housing-related businesses that faltered in the recession.
In businesses that serve broad industries, like railroads, “we are seeing an uptick,†Buffett said.
Berkshire results in the first quarter included a gain of about $1.4 billion on derivatives and investments compared with a loss of about $3.2 billion on the holdings in the year earlier.
http://www.bloomberg.com/apps/news?pid=20601087&sid=akK27ZtzOFc0&pos=3