NetJets Pegged For Modest Profit In 2010

Nov 12, 2009
 
Fred George This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Berkshire Hathaway believes its NetJets subsidiary will post a small profit next year, a welcome contrast to grim 2009 results.

The company disclosed that NetJets suffered a 42 percent or $1.5-billion decline in revenues during the first nine months of 2009 compared to the same period a year earlier, according to the latest form 10-Q filed with the U.S. Securities and Exchange Commission. This mainly was caused by a 79 percent decline in fractional ownership sales and 24 percent lower flight operations.

NetJets had $531-million in pre-tax losses for the first three quarters of 2009, including $436 million in asset value write-downs and costs associated with downsizing. Further downsizing will take place in the fourth quarter and more aircraft will be sold off.

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