Berkshire takes big writedown for Precision Castparts, operating profit falls

(Reuters) – Warren Buffett’s Berkshire Hathaway Inc said on Saturday its quarterly operating profit fell 10%, and it took a big writedown for its Precision Castparts Corp unit, which has had struggles during the coronavirus pandemic.

Second-quarter operating profit fell to $5.51 billion from $6.14 billion a year earlier.

Berkshire also said quarterly net income rose to $26.3 billion, or $16,314 per Class A share, from $14.07 billion, or $8,608 per Class A share, a year earlier, helped by unrealized gains on its common stock investments.

Results included $10.9 billion of writedowns, including $9.8 billion for Precision, which Berkshire bought in 2016 and remains its largest acquisition.

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