Berkshire Hathaway Inc. ( BRK.B Quick Quote BRK.B - Free Report) delivered third-quarter 2020 operating earnings of $5.5 billion that decreased 32.1% year over year. Soft performance in Insurance and Others, Railroad, Utilities and Energy as well as Manufacturing, Service and Retailing resulted in the decline. Behind the Headlines
Revenues decreased about 3% year over year to $63 billion, attributable to lower revenues from Insurance and Other operations as well as Railroad, Utilities and Energy.
Costs and expenses decreased 1.6% year over year to $57 billion, largely due to increase in costs and expenses in Insurance and Other. Segment Results
Insurance and Other segment revenues increased 0.1% year over year to $17.1 billion in the third quarter of 2020 on the back of higher insurance premiums earned. Pretax earnings were $0.9 billion, up 60.7% year over year. Railroad, Utilities and Energy operating revenues declined 3.1 year over year to $11.4 billion due to decrease in volume, average revenue per car/unit and soft energy business. Pretax earnings of $2.9 billion were down 3.4% year over year. The results reflect the negative effects of COVID-19. Total revenues at Manufacturing, Service and Retailing decreased 3.9% year over year to $34.5 billion. Pretax earnings declined 1.4% year over year to $3.3 billion. Impacts of COVID-19 weighed on the results. Financial Position
As of Sep 30, 2020, consolidated shareholders’ equity was $415.2 billion, down 2.3% from the level as of Dec 31, 2019. At quarter end, cash and cash equivalents were $26.8 billion, down 58.2% from the level at 2019 end.
The company exited the third quarter of 2020 with a float of about $135 billion, up $6 billion from the figure at year-end 2019. Cash flow from operating activities totaled $29.2 billion in the first nine months of 2020, up 9.8% from the year-ago period. The company bought back shares worth $9 billion, taking the first nine months’ tally to $15.7 billion Zacks Rank
Berkshire Hathaway currently carries a Zacks Rank #3 (Hold). You can see
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