Santiago Espinal has 3 RBIs, Fernando Cruz pitches out of another jam and Reds beat Phillies 7-4

CINCINNATI (AP) — Santiago Espinal had three RBIs, reliever Fernando Cruz pitched out a jam in the seventh inning and the Cincinnati Reds held on for a 7-4 win over the Philadelphia Phillies on Wednesday night.

Will Benson had a solo homer in the third inning. Espinal singled home two as part of a four-run sixth and drove in another with a sacrifice fly in the seventh. That came on the heels of a 3-for-4 night for Espinal on Tuesday that included his first homer as a Red.

Cincinnati starter Nick Lodolo went five innings, allowing three runs and six hits while striking out four and walking three.

For the second straight night, Cruz came in with one out and stranded Phillies runners on second and third. Cruz struck out Edmundo Sosa with a splitter and induced a fly ball to right from pinch-hitter Brandon Marsh that Benson tracked down at the wall.

“He just wants the ball. He wants to do his part,” Reds manager David Bell said of the 34-year-old right-hander. “He comes in fearless and believing in himself.”

Said Cruz: “As a high-performance athlete, you want those situations. Those are the ones you want. I'm having a lot of fun doing it."

Elly De La Cruz had three hits and three stolen bases, increasing his major league-leading total to 15. In the eighth, he singled, stole second and third and scored on a fly ball by Spencer Steer.

“The way he's handling it is everything,” Bell said. “He continues to work. He understands the situation. He's not just aimlessly running out there. He understands the pitchers who are on the mound, what's he's up against and then ability just taking over.”

The loss wasted another excellent outing by Philadelphia starter Spencer Turnbull, who allowed a run and three hits through five innings with eight strikeouts in 89 pitches.

“He was going back out (for the sixth) but (the Reds) made two pitching changes in that inning. It took about 25 minutes. That’s why we made the change," Phillies manager Rob Thomson said. "If he was at 50 pitches, we’d have sent him back out, but once you’re in that 90 range, it was too long.”

Turnbull has allowed just four earned runs and 13 hits in 27 innings through his first five starts.

"I couldn’t ask for anything more,” Thomson said.

Alec Bohm had four hits and two RBIs for the Phillies, who have lost two in a row to the Reds after taking the first game of the series on Monday.

TRAINER'S ROOM

Reds: 2B/DH Jonathan India and OF Jake Fraley each missed their fourth straight game with illness.

UP NEXT

The Phillies send right-hander Zack Wheeler (1-3, 2.30 ERA, 38 Ks) against Reds right-hander Nick Martinez (0-0, 4.76) in the finale of the four-game series on Thursday afternoon.

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Philadelphia Phillies' Trea Turner scores on a single by Alec Bohm during the first inning of the team's baseball game against the Cincinnati Reds in Cincinnati, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Cincinnati Reds' Will Benson, left, celebrates with Elly De La Cruz after hitting a solo home run against the Philadelphia Phillies during the third inning of a baseball game in Cincinnati, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Cincinnati Reds' Elly De La Cruz, right, slides into third base on an error by Philadelphia Phillies third baseman Edmundo Sosa during the third inning of a baseball game in Cincinnati on Friday, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Philadelphia Phillies' Trea Turner, middle, is tagged out by Cincinnati Reds' Jeimer Candelario, right, on a steal attempt during the fifth inning of a baseball game in Cincinnati on Friday, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Cincinnati Reds' Lucas Sims yells after he allowed an RBI single to Philadelphia Phillies' Johan Rojas during the sixth inning of a baseball game in Cincinnati on Friday, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Philadelphia Phillies' Johan Rojas hits an RBI single during the sixth inning of the team's baseball game against the Cincinnati Reds in Cincinnati, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Cincinnati Reds' Will Benson watches his RBI single during the sixth inning of the team's baseball game against the Philadelphia Phillies in Cincinnati, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Cincinnati Reds' Elly De La Cruz gestures to teammates after hitting an RBI ground-rule double during the sixth inning of the team's baseball game against the Philadelphia Phillies in Cincinnati, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Cincinnati Reds' Elly De La Cruz hits an RBI ground-rule double during the sixth inning of the team's baseball game against the Philadelphia Phillies in Cincinnati, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

Cincinnati Reds' Fernando Cruz celebrates as he walks to the dugout after the final out in the top of the seventh inning of the team's baseball game against the Philadelphia Phillies in Cincinnati, Wednesday, April 24, 2024. (AP Photo/Aaron Doster)

OMAHA, Neb. (AP) — Warren Buffett's company reported a steep drop in earnings Saturday because the paper value of its investments fell, but the tens of thousands of shareholders filling an Omaha arena to hear Buffett answer questions at the annual meeting later can take heart that Berkshire Hathaway's many businesses performed well.

Berkshire reported a $12.7 billion profit, or $8.825 per Class A share, in the quarter. That's roughly one-third of the $35.5 billion, or $24,377 per A share, that Berkshire reported a year ago.

But those figures were heavily swayed by a large drop in the paper value of Berkshire's investments. That's why Buffett encourages investors to pay more attention to the conglomerate's operating earnings that exclude the investment figures. By that measure, Berkshire's operating earnings jumped 39% to $11.222 billion from last year's $8.065 billion as its insurance companies led a strong performance.

The three analysts surveyed by FactSet Research had predicted operating earnings of $6,701.87 per Class A share.

Buffett did sell off nearly $6 billion in stocks during the quarter, including trimming about 13% of Berkshire's massive Apple stake. The investment in the iPhone maker is still the biggest one in the $364 billion portfolio at $135.4 billion.

But the estimated value of Berkshire's Apple stake suggests that Buffett sold off more than 100 million shares. Buffett has said he invested in Apple's stock because of how devoted consumers are to the iPhone and other Apple products.

Apple CEO Tim Cook, who is at the Berkshire meeting, told CNBC that he still considers it a privilege to have Berkshire as a major shareholder.

Berkshire reported a $2.6 billion underwriting profit at its insurers, up from $911 million a year ago.

BNSF railroad's profits did disappoint and drop 8% to $1.143 billion, but most of its many other companies delivered solid results, including a 72% jump in operating profits at the utility unit that added $717 million to Berkshire's total.

Berkshire's revenue grew 5% to $89.87 billion in the quarter. The two analysts who reported estimates to FactSet predicted $87.044 billion revenue.

With no major acquisitions in sight, Berkshire's massive cash pile continued to grow to a record $188.993 billion in the quarter. Berkshire even spent $2.6 billion repurchasing shares during the first three months of the year, but its companies that include Geico insurance, BNSF railroad, several major utilities and an assortment of dozens of others keep generating mountains of cash.

The main arena was already three-quarters full within half an hour of the doors opening Saturday because people are always eager to vacuum up tidbits of wisdom from billionaire Warren Buffett, who famously dubbed the meeting ‘Woodstock for Capitalists.’

But a key ingredient is missing this year: It’s the first meeting since Vice Chairman Charlie Munger died.

The meeting opened with a video tribute to Munger recounting his life and highlighting some of his best known quotes from the meetings over the years, including classic lines like “If people weren't so often wrong, we wouldn't be so rich.” The video also featured old interviews with Buffett and Munger talking about their epic friendship.

For decades, Munger shared the stage with Buffett every year for the marathon question and answer session that is the event's centerpiece. Munger routinely let Buffett take the lead with expansive responses that went on for several minutes. Then Munger himself would cut directly to the point. He is remembered for calling cryptocurrencies stupid, telling people to “marry the best person that will have you” and comparing many unproven internet businesses in 2000 to “turds.”

He and Buffett functioned as a classic comedy duo, with Buffett offering lengthy setups to Munger's witty one-liners. Together, they transformed Berkshire from a floundering textile mill into a massive conglomerate made up of a variety of interests, from insurance companies such as Geico to BNSF railroad to several major utilities and an assortment of other companies.

Munger often summed up the key Berkshire’s success as “trying to be consistently not stupid, instead of trying to be very intelligent.” He and Buffett also were known for sticking to businesses they understood well.

“Warren always did at least 80% of the talking. But Charlie was a great foil,” said Stansberry Research analyst Whitney Tilson, who was looking forward to his 27th consecutive meeting with a bit of a heavy heart because of Munger's absence.

That absence, however, may well create space for shareholders to get to know better the two executives who directly oversee Berkshire's companies: Ajit Jain, who manages the insurance units, and Greg Abel, who handles everything else. Abel will one day replace the 93-year-old Buffett as CEO.

Morningstar analyst Greggory Warren said he hopes Abel will speak up more this year and let shareholders see some of the brilliance Berkshire executives talk about. Ever since Munger let it slip at the annual meeting three years ago that Abel would be the successor, Buffett has repeatedly reassured investors that he's confident in the pick.

Experts say the company has a solid culture built on integrity, trust, independence and an impressive management roster ready to take over.

“Greg's a rock star,” said Chris Bloomstran, president of Semper Augustus Investments Group. "The bench is deep. He won’t have the same humor at the meeting. But I think we all come here to get a reminder every year to be rational.”

For more AP coverage of Warren Buffett look here: https://apnews.com/hub/warren-buffett. For Berkshire Hathaway news, see here: https://apnews.com/hub/berkshire-hathaway-inc. Follow Josh Funk online at https://www.twitter.com/funkwrite and https://www.linkedin.com/in/funkwrite.

Berkshire Hathaway shareholders pose with the mascot for one of its companies, Oriental Trading, while the more famous spokeslizard for Geico insurance looms over their shoulder, Friday, May 3, 2024, in Omaha, Neb. CEO Warren Buffett will spend hours answering questions at the meeting on Saturday. (AP Photo/Josh Funk)

Berkshire Hathaway shareholders pose with a cutout poster of CEO Warren Buffett Friday, May 3, 2024, in Omaha, Neb., inside the exhibit hall in Omaha where Berkshire companies sell their products. Buffett will spend hours answering questions at the meeting Saturday. (AP Photo/Josh Funk)

Daegwon Kim of South Korea, who arrived in line at 3:30 a.m., takes photos of the crowd behind him outside the Berkshire Hathaway annual meeting on Saturday, May 4, 2024, in Omaha, Neb. (AP Photo/Rebecca S. Gratz)

Berkshire Hathaway Vice Chairman Greg Abel poses with shareholders Friday, May 3, 2024, in Omaha, Neb. Abel is set to be the next CEO after Warren Buffett is gone. (AP Photo/Josh Funk)

Berkshire Hathaway shareholders watch a model BNSF train run past a model town filled with other Berkshire companies Friday, May 3, 2024, in Omaha, Neb. Buffett will spend hours answering questions at a meeting Saturday. (AP Photo/Josh Funk)

Berkshire Hathaway shareholders line up to take selfies with Greg Abel Friday, May 3, 2024, in Omaha, Neb. Abel will one day replace Warren Buffett as CEO. (AP Photo/Josh Funk)

Berkshire Hathaway investment manager Ted Weschler, center, talks with Brooks Running CEO Dan Sheridan, Friday, May 3, 2024, in Omaha, Neb., one day ahead of the annual shareholders meeting. (AP Photo/Josh Funk)

Berkshire Hathaway shareholders pose with a cutout poster of CEO Warren Buffett, Friday, May 3, 2024, in Omaha, Neb., one day ahead of the annual shareholders meeting. (AP Photo/Josh Funk)

Berkshire Hathaway Vice Chairman Greg Abel poses for pictures with shareholders while touring the booths Berkshires companies set up, Friday, May 3, 2024, in Omaha, Neb. Abel will succeed Warren Buffett as CEO one day. (AP Photo/Josh Funk)

Berkshire Hathaway Vice Chairman Greg Abel checks out the flight simulators offered by one of Berkshires companies, Flight Safety as he toured the exhibit hall Friday, May 3, 2024, in Omaha, Neb. ahead of Saturday's meeting. Abel is set to succeed Warren Buffett as CEO one day. (AP Photo/Josh Funk)