Billionaire investor Warren Buffett's investment management company Berkshire Hathaway Inc. (BRK-A,BRK-B) reported a significant rise in profit for the fourth quarter, benefiting from an investment and derivative gains, compared to last year.
The Omaha, Nebraska-based company's net earnings attributable to Berkshire for the fourth quarter was $3.06 billion or $1,969 per class A share, compared to $0.12 billion or $76 per class A share last year.
Results for the quarter include investment and derivative gains of $1.03 billion, while the prior-year fourth quarter included investment and derivative losses of $3.25 billion.
On average, three analysts polled by Thomson Reuters expected the company to earn $1208.33 per class A share. Analysts' estimates typically exclude special items. Revenues rose 32% to $30.20 billion from $24.59 billion in the previous year.
Excluding investment and derivative gains, operating profit for the quarter declined 40% to $2.03 billion or $1,308 per class A share from $3.37 billion or $2,175 per class A share.
In the preceding third quarter, the company reported a surge in profit helped mainly by huge derivative gains and higher income from insurance underwriting. Net earnings for the third quarter were $3.24 billion or $2087 per Class A share, compared to $1.06 billion or $682 per share Class A share for the year-ago quarter. Total revenue for the third quarter increased 7% to $29.90 billion from $27.93 billion in the same quarter last year.
Berkshire, which primarily engages in the insurance and reinsurance of property as well as casualty risks business, owns roughly 80 subsidiaries, including clothing, furniture, jewelry and corporate jet firms. It also has major investments in companies such as Coca-Cola Co. and Wells Fargo & Co.
For the fiscal year 2009, net earnings attributable to the company increased to $8.05 billion or $5,193 per class A share, compared to $4.99 billion or $3,224 per class A share. Total revenues for the year declined to $92.78 billion from $95.70 billion a year ago.
Analysts expected the company to report earnings of $4712 per class A share for the full year 2009.
The company's key metric, gain in net worth during 2009 was $21.8 billion, which increased the per-share book value of both our Class A and Class B stock by 19.8%.
Berkshire's insurance unit, which includes Geico and reinsurance giant General Re continued to remain as the backbone of the company by giving money to invest at little or no cost from premiums it holds until claims must be paid. That money, called float, grew to $62 billion at the end of 2009
Berkshire's insurance businesses generated $1.01 billion in net income from underwriting in 2009, down from $1.7 billion last year. Total revenues from the business for the year declined to $92.78 billion from $95.70 billion in the previous year.
Berkshire's utility division, which includes MidAmerican Energy Holdings Co. and PacifiCorp, generated net income of $1.07 billion during 2009, down from $1.70 billion in 2008. Yearly revenues at the business were $11.44 billion, down from $13.97 billion a year ago.
The manufacturing, service and retail unit at Berkshire generated $1.1 billion in net income in 2009, down from $2.3 billion the year before. Revenues from the business for the year declined to $61.66 billion from $66.10 billion last year.
In Finance and Financial Products business, which includes the operations of Clayton Homes, Fleetwood, Champion and Oakwood, the company reported a decline in income before investment and derivatives gains or losses for 2009 to $781 million from $787 million a year ago. Revenues rose to $112.49 billion from $107.77 billion.
Within the company's investments division, total common stocks carried at Market had a cost of $34.65 billion and a market value of $59.03 billion.
Looking forward, the company Chairman Buffett reiterated that he believes the derivatives will be profitable over their lifetime, partly because Berkshire held about $6.3 billion in derivative premiums at year end that it can invest.
Buffett also said its insurance business Geico had 8.1% of the auto insurance market in 2009, but the company's growth may slow this year because of slumping vehicle sales and high unemployment.
BRK-A last traded on Friday at $119,800.00, up 1,000.00 or 0.84%, on the NYSE. In the past 52-week period, the stock trended in a range between $118,642.50 and $120,155.00, on a 3-month average volume of 0.31 million shares.
BRK-B last traded on Friday at $80.13, up 0.73 or 0.92%, on a volume of 10.53 million shares on the NYSE. In after hours, the stock declined 0.10 or 0.12%, trading at $80.03. In the past 52-week period, the stock trended in the range of $45.02 to $80.18, on a 3-month average volume of 10.53 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.