The company explains that, due to the measures introduced to contain the pandemic, most of its businesses have been “negatively affected”.
–
US billionaire Warren Buffett’s Berkshire Hathaway conglomerate posted a record net loss of nearly $ 50 billion in the first quarter of the year due to the impact of the coronavirus pandemic, according to a company regulatory statement released Saturday.
The conglomerate net income fell by $ 49.75 billion, dragged down, first, by the 54,520 million in investment losses, mainly ordinary shares. At the same time, Berkshire’s quarterly operating profit, which Buffett himself considers a better performance measure, rose nearly 6%, to nearly $ 5.9 billion.
“Most of our businesses were negatively affected”
The company says in the document that before mid-March, when the pandemic hit the United States, many of its companies recorded increases in income and profits compared to 2019.
–
–
–
–
However, the trend changed sharply as a result of the restrictions and the confinement decreed to stop the ravages of the disease. “As efforts to contain the spread of the covid-19 pandemic accelerated in the second half of March and dragged on through April, most of our businesses were adversely affected, and effects to date range from relatively mild to severe“Berkshire explains.
The conglomerate details that, although several of its businesses considered essential have continued to operate —including railroads, utilities and energy, as well as insurance and some manufacturing, distribution and services businesses— in April, the income of these companies “has slowed considerably “
Meanwhile, several of its retail businesses and certain manufacturing and service businesses are being “severely affected,” particularly by “closing facilities where crowds can gather, such as retail stores, restaurants, and entertainment venues.”
If you found it interesting, share it with your friends!
–
