Berkshire Hathaway: FlightSafety Up, NetJets Down
Revenues at Berkshire Hathaway’s services group–which includes fractional provider NetJets and flight-training provider FlightSafety International–were $8.435 billion last year, an increase of $643 million over 2007. Overall, pre-tax earnings at the Berkshire division last year were relatively unchanged from 2007 at $971 million, according to the company’s financial report issued late last week. Unlike in 2007, the two aviation services didn’t play a significant part in the revenue increase last year. In fact, more than 80 percent of this jump in the services group revenues stemmed from electronics components distributor TTI, though FlightSafety did contribute to the uptick. However, increased earnings at FlightSafety and TTI were offset by lower earnings from NetJets, according to Berkshire Hathaway. In the fourth quarter last year, NetJets “experienced a significant reduction in revenue as general economic conditions worsened,” it said. “This resulted in lower customer usage and demand, which negatively affected operating margins. In addition, NetJets incurred charges of $54 million to write down the aircraft fleet.” According to Berkshire’s data, NetJets employs 7,945 people, while FlightSafety has a roster of 4,482.