Buffett's Berkshire Hathaway Reports Rise in Net Earnings
February 25 2017 - 8:41AM
Dow Jones News
By Nicole Friedman
Warren Buffett's Berkshire Hathaway Inc. said fourth-quarter net
earnings rose nearly 15%, boosted in part by the stock market's
end-of-year gains.
Berkshire's year-end results were released Saturday alongside
Mr. Buffett's closely read annual letter to shareholders.
Berkshire Hathaway reported fourth-quarter net earnings of $6.29
billion, or $3,823 per Class A share equivalent, up from $5.48
billion, or $3,333 a share, in the year-earlier period. Operating
earnings, which exclude some investment results, fell to $4.38
billion, or $2,665 a Class A share, from $4.67 billion, or $2,843 a
Class A share, in the year prior.
The Omaha, Neb., conglomerate runs a large insurance operation
as well as railroad, utilities, industrial manufacturers, retailers
and even auto dealerships. It also holds large investments,
especially in the stock market.
Berkshire added two companies in 2016 -- metal components maker
Precision Castparts Corp., its biggest acquisition ever, and
battery maker Duracell -- which helped boost results. Berkshire
subsidiaries also made a number of "bolt-on acquisitions."
Book value, a measure of assets minus liabilities that is Mr.
Buffett's preferred yardstick for measuring net worth, rose 10.7%
to $172,108 a Class A share in 2016, compared with a 12% total
return in the S&P 500, including dividends.
For the full year, Berkshire's net earnings dipped to $24.07
billion from $24.08 billion.
Write to Nicole Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
February 25, 2017 08:26 ET (13:26 GMT)
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