Berkshire Hathaway reported sales in its Other Manufacturing segment, which includes Fruit of the Loom, Russell and Brooks Sports, slid 12.9% to $3.24 billion from $3.72 billion. Pre-tax earnings of the segment were $293 million, a decrease of $185 million, or 39% versus 2008.
The business also includes Vanity Fair women's intimate apparel as well as several manufacturers of building products (Acme Building Brands, Benjamin Moore, Johns Manville and MiTek).Also included in this group are Forest River, a leading manufacturer of leisure vehicles and ISCAR Metalworking Companies (“IMC”), an industry leader in the metal cutting tools business with operations worldwide. Other brands in the segment include Garan, Fechheimers, Justin Brands and the H.H. Brown Shoe Group.
In its 10Q filing, Berkshire Hathaway said “Nearly all of the businesses in the manufacturing group are experiencing the adverse effects of the global economic recession as consumers and customers dramatically cut purchases.” The earnings decline for the segment was attributed to the lower revenues as well as relatively higher costs resulting from lower manufacturing efficiencies.
“These businesses have taken actions to reduce costs and reduce or delay capital spending until the economy improves,” Berkshire Hathaway said. “Although revenues and earnings for the third quarter were lower than the comparable 2008 periods, revenues increased 9% and earnings increased 30% versus the second quarter of 2009.”
Revenues for the first nine months of 2009 were $8,851 million, a decrease of $2,347 million (21%) from 2008. During the first nine months of 2009, revenues were lower for apparel (13%), building products (23%) and other businesses (25%) as compared to the first nine months of 2008. Earnings for the first nine months of 2009 were $640 million, which were $818 million (56%) lower than the comparable 2008 period.
