Berkshire Hathaway Earnings Dip 42%
NU Online News Service, Aug. 9, 12:00 p.m. EDT?Investment losses led to a 42 percent decline in second-quarter earnings at Berkshire Hathaway Inc.[@@]
The Omaha-based holding company run by billionaire investor Warren Buffett on Friday reported second-quarter earnings of $1.28 billion, or $834 per class-A share, compared to $2.3 billion, or $1,452 per share in the second quarter of last year.
Mr. Buffett sold a large amount of U.S. government bonds in last year's second quarter, leading to a $905 million investment gain. During the second quarter this year the company suffered investment losses of $172 million.
Excluding investments in both periods, the company reported $946 per share this year, compared to $862 per share in the comparable period last year. Among the most prominent of Berkshire's holdings is the auto insurer Geico and General Re reinsurance company.
Berkshire's net earnings for the first half of the year dropped to $2.83 billion, or $1,842 per share, from $3.96 billion, or $2,579, for the same period last year.
Excluding investment gains, the first half of the year saw earnings rise to $2.59 billion, or $1,684 a share, from $2.53 billion, or $1,647 per share.
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