Berkshire Hathaway’s earnings cut share buyback to $1.0 billion (NYSE:BRK.B)

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Berkshire Hathaway (NYSE:BRK.B) (BRK.B) reduced share buybacks in the second quarter of the year. Second-quarter operating earnings were up from the prior quarter and from a year earlier. However, the decline in capital markets during the quarter hurt the company to record losses on investments and derivatives, resulting in a net loss for the quarter.

The company repurchased ~$1.0 billion of common stock during the quarter, vs. It spent $3.2 billion in Q1 and $6.9 billion in shares it bought back in Q4 2021.

The Omaha-based company founded by Warren Buffett had $05.4 billion in cash and short-term securities as of June 30, 2021, down slightly from $106.3 billion as of March 31.

Second quarter operating income of $9.28 billion vs. $7.04 billion in Q1 and $6.69 billion in Q2 2021.

Berkshire (BRK.B) reported $53.0 billion in investment and derivative losses in the quarter vs. losses of $5.45 billion in the previous quarter and profits of $21.4 billion in the previous quarter. This results in a net loss of $43.8 billion vs. profit of $5.46 billion in Q1 and net earnings of $28.1 billion a year ago.

Insurance float was ~$147 billion on June 30 compared to $148 billion on March 31.

Operating income by segment compared to the previous quarter and a year ago:

  • Insurance underwriting — $581 million vs. $47 million in Q1 and $376 million in Q2 2021.
  • Insurance – Investment Income — $1.91 billion vs. $1.17 billion and $1.22 billion
  • Rail transportation — $1.66 billion vs. $1.37 billion and $1.52 billion
  • Utilities and Energy — $766 million vs. $750 million and $740 million
  • Manufacturing, service and retail — $3.25 billion vs. $3.03 billion and $3.00 billion
  • Other — $1.12 billion vs. $677 million and -$169 million

Under development… check back for updates

See why SA contributor Yiannis Zurmpanos calls Berkshire (BRK.B) action to navigate the recession

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