Warren Buffett's Berkshire Hathaway on Saturday posted a lower operating profit as the Covid-19 pandemic weighed on some of its businesses, although gains in stocks such as Apple fuelled a big quarterly net profit.
The conglomerate disclosed it repurchased a record $9.3 billion of its underperforming stock in the quarter, and $16bn so far this year, as Mr Buffett remained unable to find huge acquisitions to spur growth.
Berkshire also said that while some businesses are rebounding from the pandemic's depth, the pain persists at its Precision Castparts aircraft and industrial parts unit, which is expecting thousands of additional job losses.
Third-quarter operating profit fell 32 per cent to $5.48bn, or about $3,488 per Class A share, from $8.07bn a year earlier.
Meanwhile, net income rose 82 per cent to $30.14bn, or $18,994 per Class A share, from $16.52bn, or $10,119 per share, a year earlier.
Net results included $24.77bn of gains from investments such as Apple, which rose 27 per cent in the quarter and at $111.7bn is by far Berkshire's biggest stock holding.
It appeared nonetheless that Berkshire may have sold some Apple stock in the quarter because the stake should have been a few billion dollars higher, based on previously disclosed stakes, if none of it were sold.
Net results are volatile because an accounting rule requires Berkshire to report gains and losses on its common stock investments even if it does no buying and selling.
The company had posted a $26.3bn second-quarter profit, but lost $49.75bn in the first quarter. It ended September with $145.7bn of cash and equivalents.
Berkshire said most of its operating businesses have been negatively affected by the pandemic, although in the third quarter several experienced significant increases in revenue and earnings from the second quarter.
Year-over-year profit fell just 8 per cent at the BNSF railroad despite lower shipping volumes.
But at Precision, where Berkshire had taken a $9.8bn writedown in August, quarterly pretax profit fell 80 per cent, and by year end, it expects to shed 40 per cent of its workforce.
That equates to roughly 13,400 jobs, or 3,400 more than Berkshire previously disclosed had been lost.
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
Mohammed bin Zayed Majlis
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
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