Berkshire Posts $50 Bn Loss As Virus Takes Toll

Warren Buffett’s Berkshire Hathaway Inc is being hit hard by the coronavirus pandemic, posting a record quarterly net loss of nearly $50 billion on Saturday and saying performance is suffering in several major operating businesses.

- Jonathan Stempel

Berkshire said most of its a more than 90 businesses are facing “relatively minor to severe” negative effects from COVID-19, the illness caused by the novel coronavirus and now punishing the global economy, with revenue slowing considerably in April even at businesses deemed “essential.”

Berkshire released results before its annual meeting, reporting a record $49.75 billion first-quarter net loss, reflecting huge unrealized losses on common stock holdings such as Bank of America Corp and Apple Inc during the market meltdown.

While quarterly operating profit rose 6% to $5.87 billion, several larger businesses including the BNSF railroad posted declines, hurt by the negative impact of COVID-19, the illness caused by the novel coronavirus.

Buffett said operating earnings will, through at least this year, be “considerably less” than they would have been had the pandemic not occurred.

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