Berkshire Hathaway B shares lower premarket after $3.8 bn Kraft-Heinz write-down

Published 04/08/2025, 10:28
© Reuters.

Investing.com - Berkshire Hathaway has posted a $3.76 billion write-down on its stake in consumer food company Kraft Heinz (NASDAQ:KHC), while a fall in insurance underwriting premiums also dented second-quarter returns from Warren Buffett’s sprawling conglomerate.

Class B shares of Berkshire Hathaway (NYSE:BRKa) edged slightly lower in premarket U.S. trading on Monday. The results were first released over the weekend.

Along with tepid gains from common stocks such as American Express (NYSE:AXP) and Apple (NASDAQ:AAPL), the Kraft-Heinz write-down and premiums drop contributed to a steep decline in overall net profit to $12.37 billion from $30.35 billion in the same period a year ago. Revenue also fell by 1.2% to $92.5 bilion.

Still, Berkshire was boosted by an almost 20% jump in operating income at its BNSF unit that stemmed in large part from cost-cutting and lower fuel expenses.

Berkshire’s cash pile at the end of the second quarter stood at $344 billion, down slightly from $348 billion in the previous three-month period but near an all-time record high.

"[T]he Berkshire story remains the same as before, with mixed insurance underwriting performance [...], continued improvement at BNSF [...], slowing growth in investment income [...], and a giant pile of cash," analysts at Vital Knowledge said in a note.

The earnings come as Berkshire looks ahead to the upcoming departure of the 94-year old Buffett. He will step down at the end of 2025 from his long-time post at the helm of a business that has turned him into a household name in financial markets, with current Vice Chair Greg Abel set to succeed him.

In a note, analysts at Keefe, Bruyette & Woods said Berkshire is facing an "emerging management succession risk," but said this will likely impact "investors’ view" of the company "more than it will actual operations."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.