Warren Buffett's Berkshire Hathaway reveals how inflation, worker shortages, supply constraints, and flagging consumer demand are hitting American companies

Inflation, shortages, supply-chain disruptions, and concerns about consumer spending are some of the challenges American companies are facing.

Insurers, railroads, utilities, manufacturers, distributors, retailers, and service providers are some of the businesses owned by Warren Buffet's company. The company is a good example of the US economy.

The second-quarter earnings of Warren Buffet's conglomerate gave a fresh look at how inflation, interest rates, and fuel prices are affecting American businesses.

Here are nine Berkshire divisions dealing with major headaches:

Markets Insider

Higher energy prices resulted in a 70% increase in the BNSF Railway's fuel expenses in the first half of the year. The double-digit increase in its average revenue per railcar was the result of the fuel surcharge increases.

The freight-railroad network carried fewer products in the quarter. International supply chain disruptions, less demand for crude by rail, and reduced grain exports were blamed for the declines.

In the first six months of this year, BNSF's coal revenues increased by 30%, reflecting more electricity generation, higher natural-gas prices, and greater export demand

Markets Insider

The industrial-products division was hit by higher costs, supply chain disruptions, and labor shortages. Higher average selling prices and greater demand for certain products were largely offset by those tailwinds.

Both materials and utilities rose in price last quarter, and that caused manufacturing inefficiencies, according to Precision Castparts.

The first half sales volumes of Lubrizol were affected by shortages of raw materials. It hiked prices to make up for rising costs of raw materials and utilities.

The shutdown of its rail-and-leasing business in Russia resulted in a $90 million blow to the company's bottom line.

Markets Insider

Retailers' ballooning inventories resulted in their ordering less stock, which resulted in a 16% drop in apparel sales by the consumer products segment.

Apparel-and-footwear earnings halved due to lower sales volumes, manufacturing inefficiencies, and higher costs. The trend is likely to go on for the rest of the year, according to the company.

Forest River reported higher costs of materials and signs of slowing demand after several years of rapid growth.

Continue to read.