Latest news with #write-down
Bloomberg
3 days ago
- Business
- Bloomberg
Commerzbank Takes €65 Million Hit on Small Purchase Last Year
Commerzbank AG 's acquisition of a small asset manager last year has resulted in a hit of €65 million ($75.3 million), highlighting the challenges it faces in growing the business inorganically. The write-down on Aquila Capital, announced by the German lender in its second-quarter earnings Wednesday, is equivalent to almost a third of the purchase price, which Chief Financial Officer Carsten Schmitt put at about €200 million on a call with journalists.
Reuters
4 days ago
- Business
- Reuters
Berkshire Hathaway's shares fall after $3.8 billion write-down, operating profit weakness
Aug 4 (Reuters) - Class A shares of Warren Buffett's Berkshire Hathaway (BRKa.N), opens new tab fell more than 3% in afternoon trading on Monday, as investors fretted over a $3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on Saturday. The write-down of Berkshire Hathaway's 27.4% stake in Kraft Heinz (KHC.O), opens new tab, its second for the company, reflects a significant decline in the value of the investment. Berkshire had taken a $3 billion write-down in Kraft Heinz in 2019. The conglomerate is still the largest shareholder of the food and beverage firm, as per data compiled by LSEG. Kraft Heinz, which is ranked 8th in Berkshire's portfolio by market value, has faced challenges as more consumers turn to healthier options and private-label products. The conglomerate also reported a 4% dip in operating income, which fell from $11.6 billion the year earlier, as underwriting premiums fell and trade policy uncertainties hurt most of Berkshire's consumer businesses over delayed orders and shipments. The Omaha, Nebraska-based company, which has not repurchased any shares since May 2024, indicated it remains cautious about market valuations amid ongoing uncertainty over tariffs and economic growth. "The investment vehicle has stopped building up its cash pile, to end a run of eleven straight quarters that began in the third quarter of 2022 and doubled the amount of liquidity available," Russ Mould, investment director at AJ Bell, said. Mould painted this as a worry for Berkshire in the long run. Class A shares of the company, which have gained about 2% in 2025, lagged the benchmark S&P 500 index (.SPX), opens new tab. The stock shed gains since Buffett's announcement in May to step down as the CEO of the conglomerate at the end of the year, compared to a broader market rally. Buffett, 94, has led the company for over five decades. Greg Abel, now a Berkshire vice chairman, is set to take up the mantle later in the year. "The share price continues to slide, even as the U.S. stock market rallies, to perhaps suggest that investors are yet to convince themselves that Berkshire Hathaway will be the same without Warren Buffett and Charlie Munger as it was with them in charge," Mould said. Charlie Munger, the long-time vice chairman of Berkshire and the right-hand man of Buffett, passed away in 2023 at the age of 99. Berkshire's Class B shares were also down 3.3% in afternoon trading.
Yahoo
4 days ago
- Business
- Yahoo
Berkshire Hathaway's Class A shares fall after $3.8 billion write-down, operating profit weakness
(Reuters) -Class A shares of Warren Buffett's Berkshire Hathaway fell 3% in afternoon trading on Monday, as investors fretted over a $3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on Saturday. The write-down of Berkshire Hathaway's 27.4% stake in Kraft Heinz, its second for the company, reflects a significant decline in the value of the investment. Berkshire had taken a $3 billion write-down in Kraft Heinz in 2019. The conglomerate also reported a 4% dip in operating income, which fell from $11.6 billion the year earlier, as underwriting premiums fell and trade policy uncertainties hurt most of Berkshire's consumer businesses. The Omaha, Nebraska-based company, which has not repurchased any shares since May 2024, indicated it remains cautious about market valuations amid ongoing uncertainty over tariffs and economic growth. Class A shares of the company, which have gained about 2% in 2025, lagged the benchmark S&P 500 index. The stock shed gains since Buffett's announcement to step down as the CEO of the conglomerate at the end of the year. Buffett, 94, has led the company for over five decades.
Reuters
4 days ago
- Business
- Reuters
Berkshire Hathaway's Class A shares fall after $3.8 billion write-down, operating profit weakness
Aug 4 (Reuters) - Class A shares of Warren Buffett's Berkshire Hathaway (BRKa.N), opens new tab fell 3% in afternoon trading on Monday, as investors fretted over a $3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on Saturday. The write-down of Berkshire Hathaway's 27.4% stake in Kraft Heinz (KHC.O), opens new tab, its second for the company, reflects a significant decline in the value of the investment. Berkshire had taken a $3 billion write-down in Kraft Heinz in 2019. The conglomerate also reported a 4% dip in operating income, which fell from $11.6 billion the year earlier, as underwriting premiums fell and trade policy uncertainties hurt most of Berkshire's consumer businesses. The Omaha, Nebraska-based company, which has not repurchased any shares since May 2024, indicated it remains cautious about market valuations amid ongoing uncertainty over tariffs and economic growth. Class A shares of the company, which have gained about 2% in 2025, lagged the benchmark S&P 500 index (.SPX), opens new tab. The stock shed gains since Buffett's announcement to step down as the CEO of the conglomerate at the end of the year. Buffett, 94, has led the company for over five decades.
Yahoo
6 days ago
- Business
- Yahoo
Buffett's Berkshire takes $3.8 billion Kraft Heinz write-down
STORY: Warren Buffett's Berkshire Hathaway said it took a more than $3.7 billion write-down on its stake in Kraft Heinz in the second quarter... an acknowledgment that the decade-old investment hasn't worked out. The write-down followed the struggling food company's announcement that it would consider strategic alternatives, which could include a breakup. It's Berkshire's second write-down for Kraft Heinz, following a $3 billion hit in 2019. Buffett acknowledged at the time that Berkshire overpaid in the 2015 merger of Kraft Foods and H.J. Heinz, one of his biggest investment missteps. Kraft Heinz has suffered as more shoppers favor healthier and private-label alternatives. Its approximately 200 brands include Oscar Mayer, Kool-Aid, Velveeta and Jell-O. Berkshire also reported a 4% decline in quarterly operating profit as insurance underwriting premiums fell. The conglomerate signaled it remains cautious about market valuations amid uncertainty about tariffs and growth in the broader economy. Related Videos Bad news flurry, IPO market, crypto dive: Market takeaways Earnings, Fed commentary, consumer credit: What to Watch IPO market heats up: These 4 names prepare to go public next Berkshire Hathaway earnings: 'Perfect' stock to own when 'worried' Shares of Berkshire have fallen more than 12% and lagged the S&P 500 by about 22 percentage points since Buffett, who's almost 95, announced in May that he would step down as CEO at year's end. Vice Chairman Greg Abel will succeed him, though Buffett will remain chairman. Sign in to access your portfolio
