Hints and tips:
...There was a bright spot at a unit that has plagued Berkshire: aerospace parts manufacturer Precision Castparts....
...The company’s operating businesses, which span the BNSF railroad, Geico insurer and aircraft parts maker Precision Castparts, reported a 41 per cent rise in profits to $10.8bn....
...Two years after Precision Castparts laid off 40 per cent of its workers in response to a coronavirus pandemic-induced collapse in aeroplane demand, the company is back in hiring mode....
...The impact of higher interest rates and slower economic growth was evident across the businesses, which span the Dairy Queen ice cream purveyor, aeroplane parts manufacturer Precision Castparts and the BNSF...
...Castparts Corp....
...In a sign of the potential, last year BHE announced it would develop a manufacturing site powered by renewable energy, with Berkshire-owned metal components group Precision Castparts agreeing to be the first...
...Precision Castparts, acquired in 2016, sustained billions in writedowns in 2020....
...Berkshire’s last major takeover — the $37bn buyout of Precision Castparts in 2016 — resulted in a $9.8bn writedown....
...Berkshire also warned that it did not expect significant increases in aerospace revenues or earnings in the near term at Precision Castparts, the metals fabrication company in bought in 2016, due to supply...
...Sales at Precision Castparts dropped 36 per cent, a trend Berkshire said would persist even as domestic air travel increased....
...Precision Castparts “is far from my first error of that sort. But it’s a big one,” Buffett added....
...The writedown of Precision Castparts came just months after Mr Buffett conceded that he had bet wrong on the airline industry....
...The 90-year-old investor has led a mostly hands-off approach to managing the dozens of companies Berkshire owns, which includes the insurer Geico, aerospace parts maker Precision Castparts and ice-cream...
...On Saturday Berkshire disclosed it was taking a $10bn writedown on Precision Castparts, the aerospace parts manufacturer it bought for $37bn in 2016....
...Sales at aerospace-parts manufacturer Precision Castparts slid as Boeing suspended the manufacturing of its 737-Max jet and shipments to covid-affected businesses declined....
...Castparts....
...Mr Abel noted that aircraft components manufacturer Precision Castparts, which has been hit by the suspension of 737-Max production by Boeing, would need to tweak its production as demand for aircraft declines...
...It has been more than four years since Berkshire clinched its last major acquisition — the takeover of aerospace components maker Precision Castparts — over which time its cash pile has climbed to a record...
...(Wall Street Journal) Buffett’s blunder Shortly after Berkshire Hathaway bought Precision Castparts, a little-known German manufacturer, Warren Buffett’s conglomerate received an anonymous tip....
...Since agreeing to pay $32bn for Precision Castparts in 2015, the doyen of the investing world has warned his shareholders repeatedly that he may struggle to clinch another big acquisition, saying in his...
...Component maker Precision Castparts laid off 150 this month in Oregon....
...Berkshire’s last big gulp was Precision Castparts in 2016. But as if on cue, the S&P 500 fell 2 per cent on Monday over trade and geopolitical concerns and is down 5 per cent since late July....
...The last “elephant-sized acquisition” Berkshire clinched was the $32bn takeover of industrial goods group Precision Castparts, which it agreed in 2015....
...Precision Castparts, the industrials goods maker, attributed a drop in gas turbine sales to US tariffs, and electronic components distributor TTI warned sales were slowing on “reduced customer demand”....
...“This is a very high multiple for us to pay,” he acknowledged cheerfully, as he spent $37bn on Precision Castparts, which makes metal components for planes....
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