Berkshire Hathaway (NYSE: BRK.A) fourth-quarter operating profit declines

Berkshire Hathaway (New York Stock Exchange: BRK.B) (New York Stock Exchange: BRK.A) Operating profit for the fourth quarter fell from a year ago, hurt by a $1.45 billion loss in its “other” business, which includes foreign currency losses on non-U.S.-denominated debt. Its profits from underwriting railroads and insurance also fell.

The company repurchased approximately $2.6B of its common stock during Q4 2022 compared to ~$1.05B in Q3, bringing the total for the year to $7.9B.

The investment giant held about $128.7 billion in cash and short-term securities on December 31, 2022, compared to roughly $109.0 billion on September 30. That’s even with the company’s acquisition of Alleghany Corp. In the last quarter of 2022.

Operating profit for the fourth quarter was $6.71 billion, compared to $7.76 billion in the previous quarter and $7.29 billion in the prior quarter of last year.

The insurance float was $164 billion on December 31, 2022 compared to almost $150 billion on September 30. The flotation amount increased by $17 billion during the year, mostly reflecting $14 billion related to Berkshire’s (BRK/B) acquisition of Alleghany Corp.

Operating profit by business sector:

• Insurance – Underwriting: $244m vs. – $962m in Q3 and $372m in Q4 2021;
• Insurance – investment income: $2.00 billion vs. $1.41 billion in the third quarter and $1.22 billion in the fourth quarter of 2021;
• Railways – $1.47 billion versus $1.44 billion in the previous quarter and $1.69 billion in the year-ago quarter;
• Utilities and Energy – $739 million versus $1.59 billion in the previous quarter and $589 million in the year-ago quarter;
• Other controlled companies – $2.99 ​​billion versus $3.25 billion in the third quarter and $2.79 billion in the fourth quarter of 2021;
• Non-Controlled Business – $718 million versus $362 million in the prior quarter and $174 million in the year-ago quarter;
• Others — $1.45 billion compared to $67 million in the third quarter and $446 million in the fourth quarter of 2021.

Investment and derivative gains of $11.5 billion in the fourth quarter of 2022, most of which are unrealized, compared to a loss of $10.4 billion in the third quarter and $32.4 billion in the fourth quarter of 2021.

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