Berkshire Hathaway recovers from Covid woes
Warren Buffett's Berkshire Hathaway Inc on Saturday said many of its businesses are enjoying strong recoveries from the early depths of the coronavirus pandemic, fueling rebounds in profits and revenue.
The company Buffett has run since 1965 also signaled the billionaire's confidence in its future by repurchasing $6 billion of its own shares in the second quarter, even as its stock price regularly set new highs.
Omaha, Nebraska-based Berkshire's manufacturing, service and retailing businesses suffered last year as economic activity plunged, job losses soared and shoppers stayed home.
But now, Berkshire said businesses such as the BNSF railroad, NetJets luxury planes and its namesake auto dealerships are posting "significant" recoveries despite supply chain disruptions and higher costs, with earnings and revenue sometimes topping pre-pandemic levels.
Another sign of improvement was Berkshire's decision not to repeat a caution from its previous quarterly report that other operating units still faced adverse effects from the pandemic.
Second-quarter operating profit rose 21 per cent to $6.69 billion, or about $4,424 per Class A share, from $5.51 billion, or about $3,463 per share, a year earlier.
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