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BUSINESS Monday 4 noveMber 2019
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Berkshire Hathaway's third-

quarter profits decline 11%

By JOSH FUNK the quarter. A year ago, it
AP Business Writer registered an unrealized
OMAHA, Neb. (AP) — War- $11.66 billion investment
ren Buffett's company re- gain.
ported Saturday that it saw Berkshire's revenue im-
an 11% decline in third- proved 2% to $64.97 billion.
quarter profits because of Edward Jones analyst Jim
a smaller increase in the Shanahan said the results
paper value of its invest- look good overall despite
ments, even as it sits on a the ongoing challenges
mountain of cash. of the U.S. trade war with
Berkshire Hathaway said China and weakness in
it made $16.52 billion, or manufacturing, but it's dis-
$10,119 per Class A share, appointing that Berkshire
in the quarter, down from didn't find a way to use
$18.54 billion, or $11,280 per more of its cash.
Class A share, a year ago. Berkshire is sitting on a pile
Buffett has long said Berk- of more than $128 billion
shire's operating earnings cash because Buffett has In this May 5, 2019, file photo Warren Buffett, Chairman and CEO of Berkshire Hathaway, speaks
offer a better view of quar- struggled to find major during a game of bridge following the annual Berkshire Hathaway shareholders meeting in Oma-
terly performance because acquisitions for the com- ha, Neb.
they exclude investments pany recently. Buffett said Associated Press
and derivatives, which Berkshire completed a $10 quarter, up from $1.393 million gain on its Kraft Berkshire Hathaway Inc.
can vary. By that measure, billion investment in Occi- billion a year ago, as it re- Heinz investment during owns more than 90 compa-
Berkshire's operating earn- dental Petroleum and re- duced costs as volume the quarter after the food nies, including BNSF railroad
ings improved to $7.86 bil- purchased about $700 mil- slowed. company released its earn- and clothing, furniture and
lion, or $4,812 per Class A lion of its shares during the Berkshire's utilities generat- ings for the first half of the jewelry businesses. Its insur-
share, from $6.88 billion, or quarter. ed $1.18 billion net income, year in August. Earlier in ance and utility businesses
$4,186.05 per Class A share. "Whenever this market pulls up from $1.09 billion a year the year, Berkshire omit- typically account for more
Analysts surveyed by Fact- back meaningfully, they'll ago. The company's insur- ted Kraft Heinz from its first than half of the company's
Set expected operat- have a lot of capacity to ance units, which include two quarterly reports while operating income. The
ing earnings per share of put cash to work," Shana- Geico, generated $1.48 bil- Kraft Heinz reviewed and company also has major
$4,299.20 on average. han said. lion in investment income, restated its earnings after it investments in such com-
Berkshire Hathaway re- Berkshire said its BNSF rail- up from $1.24 billion a year announced a $15.4 billion panies as Apple, American
corded an $8.67 billion pa- road added $1.466 bil- ago. writedown in the value of Express, Coca-Cola and
per investment gain during lion net income during the Berkshire recorded a $467 its brands. Wells Fargo & Co.q

McDonald’s CEO steps down after relationship with employee

By CATHY BUSSEWITZ and formance, the company strategic plan and oversaw
DEE-ANN DURBIN said in a news release. the most comprehensive
AP Business Writers Kempczinski joined Mc- transformation of the U.S.
NEW YORK (AP) — McDon- Donald's in 2015. He was business in McDonald's his-
ald's chief executive officer responsible for approxi- tory, said Enrique Hernan-
has left the company after mately 14,000 McDonald's dez, chairman of McDon-
violating company policy restaurants in the U.S. He ald's board, in a statement.
by engaging in a consen- was instrumental in the de- Kempczinski described
sual relationship with an velopment of McDonald's Easterbrook as a mentor.q
employee, the corporation
said Sunday.
The fast food giant said
former president and CEO
Steve Easterbrook dem-
onstrated poor judgment.
McDonald's forbids man- In this Wednesday, July 26, 2017, file photo, McDonald's CEO
agers from having roman- Steve Easterbrook is interviewed at the New York Stock Ex-
tic relationships with direct change.
or indirect reports. Associated Press
In an email to employ- tors voted on Easterbrook's named Chris Kempczin-
ees, Easterbrook acknowl- departure Friday after con- ski, who recently served as
edged he had a relation- ducting a thorough review. president of McDonald's
ship with an employee and Details of Easterbrook's USA, as its new president
said it was a mistake. separation package will and CEO.
"Given the values of the be released Monday in a McDonald's is planning to
company, I agree with the federal filing, according to file its third-quarter earnings
board that it is time for me a company spokesperson. report on Tuesday, and the
to move on," Easterbrook Easterbrook was CEO since leadership transition is unre-
said in the email. 2015. lated to the company's op-
McDonald's board of direc- The board of directors erational or financial per-