Acme Brick

Acme Brick
Berkshire Hathaway in the fourth-quarter profit rebounded sharply, thanks largely to the unrealized gains 1bn on financial derivatives and investments.

Warren Buffett, the company said on Saturday that the insurance companies and utilities divisions had performed well enough to offset weakness in affiliated companies most affected by the weakness of the economy, such as NetJets, Acme Brick, and other manufacturing and retail trade.

Berkshire made 3,056 billion dollars in net income, or 1969 in the category (a) a share in the quarter. Which was up from 117m, or 76 per share in the previous year. And three analysts polled by Thomson Reuters had been expected to report on Berkshire's fourth-quarter earnings per share of 1208.33 on average.

Berkshire said it generated 30,2 billion dollars of revenue in the fourth quarter, nearly 23% higher than the fourth-quarter revenue of 24,6 billion dollars in 2008.

In the middle of the road for research and Capital Management analyst Justin Fuller said Berkshire's investment income was a bright spot, while the "profits continued to struggle in all areas."

Berkshire received a batch of loans to several companies in the depths of the financial crisis in late 2008 and early last year.

Companies such as Goldman Sachs and General Electric, Harley-Davidson to pay no less than 10% interest on nearly 9bn Berkshire made them. Such transactions are part of the reason Berkshire's investments and derivatives in addition to 1,03 billion dollars profit last quarter.

A year earlier, unrealized losses to a large extent of 3,3 billion dollars of long-term investments and derivative contracts weighed on the company's earnings last quarter.

Buffett reiterated that he believed that the derivatives, some linked to stock market indices, will be profitable, partly because Berkshire about 6,3 billion dollars, which was held in premiums derived at the end of it can invest. Berkshire published its annual report with Buffett in a letter to shareholders.

The company describes the performance of its branches throughout the past year in these reports, but did not disclose detailed information about the fourth quarter alone. Buffett said Berkshire's insurance unit, which includes Geico, reinsurance giant General Re-insurance, was born 1,01 billion dollars in net income from the IPO last year, down from 1,7 billion in the previous year. However, the investment income in the division of insurance has grown to 4,1 billion dollars last year from 3,5 billion in the previous year.

Berkshire's utility division, which includes MidAmerican Energy Holding Company and PacifiCorp, in addition to $ 1.07 billion net income last year, down from 1,7 billion U.S. dollars in 2008. In coming quarters, Berkshire will benefit the most recent sub-division, Burlington Northern Santa Fe railroads.

Manufacturing and services, and retail unit in Berkshire generated less than half the profit it did in the previous year. Those companies generated U.S. $ 1,1 billion in net income last year, down from 2,3 billion in 2008.

Buffett's letter also reflects the Berkshire 9,9% stake in BYD, the Chinese car industry and batteries. He said that the stake was worth $ 1,99 billion U.S. dollars as of December 31, more than eight times the Berkshire 232m paid.

Berkshire said it had raised its stake in Sanofi-Aventis. Buffett said his company owned 25,1 million shares, or 1,9% of Sanofi as of December 31, up from 22,1 million or 1,7% in the previous year. The Berkshire stake in Tesco rose to 234.2 - million shares, or 3%, from 227.3 - million, or 2,9%, during the same period. Saba, AP, Reuters