Berkshire Hathaway Profit Up

(RTTNews) - Billionaire Warren Buffett's Berkshire Hathaway Inc. (BRK.A; BRK.B) reported a rise in profit for the fourth quarter, aided by gains at its insurance operations, amid improving U.S. economy.

Net earnings attributable to Berkshire shareholders for the quarter was $4.99 billion or $3,035 per Class A equivalent share, up from $4.55 billion or $2,757 per Class A equivalent share in the year-ago quarter.

The latest quarter results include $1.21 billion in investment and derivative gains, compared to $1.74 billion in the final quarter of last year.

Operating earnings, which exclude investment and derivative gains/losses, were $3.78 billion or $2,297 per Class A equivalent share, compared to $2.81 billion or $1,704 per Class A equivalent share in the same quarter a year ago.

The Omaha, Nebraska-based company's revenue for the quarter rose to $47.05 billion from $44.72 billion in the comparable quarter last year. For the full year, net earnings attributable to Berkshire shareholders surged to $19.48 billion or $11,850 per Class A equivalent share from $14.83 billion or $8,977 per Class A equivalent share in the prior year. Operating earnings were $15.14 billion or $9,211 per Class A equivalent share, up from $12.6 billion or $7,629 per Class A equivalent share a year ago. Total revenue for the year was $182.15 billion versus $162.46 billion last year.

Fourth quarter operating earnings from the company's insurance underwriting businesses were $394 million as against an operating loss of $19 million last year. Operating earnings from insurance underwriting businesses for the full year soared to $1.99 billion from $1.05 billion in 2012. Berkshire's insurance group include GEICO and General Reinsurance among others.

"On the operating front, just about everything turned out well for us last year —in certain cases very well," the billionaire investor wrote in his letter. Buffett said earnings from a "Powerhouse Five" of large non-insurance unit - the BNSF railway, Iscar for metalworking, Lubrizol for chemicals, Marmon for industrial products, and MidAmerican, is expected to improve pre-tax profit in 2014 by $1 billion from the $10.8 billion in 2013.

The company's book value increased 18.2% from 2012 year-end to $134,973 per Class A equivalent share at December 31, 2013.

Berkshire's Class A shares closed Friday's regular trading session at $173,708, up $1,978. The company's Class B shares closed the day's session at $115.78, up $1.20.