Buffett's Berkshire has first loss since 2001

By Jonathan Stempel

NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc posted its first quarterly loss since 2001, hurt by losses on derivative contracts, a big investment in the oil company ConocoPhillips, and the weakening economy.

The net loss for the Omaha, Nebraska-based insurance and investment company was $1.53 billion, or $990 per Class A share, and compared with a profit of $940 million, or $607, a year earlier.

Excluding investments, operating profit fell 12 percent to $1.71 billion, or $1,100 per share, from $1.93 billion, or $1,247. That profit was in line with the $1.7 billion that Buffett estimated at Berkshire's annual meeting last Saturday.

Analysts on average expected operating profit of $1,087 per share, according to Reuters Estimates. Revenue fell 9.5 percent to $22.78 billion. Book value per Class A share fell 6.1 percent to $66,248, following a 9.6 percent drop in 2008.

Buffett said many of Berkshire's nearly 80 businesses were hurt by the recession and lower consumer spending, including housing-related units that make bricks, insulation and paint.

Berkshire last had a quarterly loss in the third quarter of 2001, because of insurance claims from the September 11 attacks. It called the global credit crisis "temporary," but said the company could face "significant" pressure if it persists.

"Results reflect the overall economy, which Buffett does not expect to recover quickly," said Michael Yoshikami, president of YCMNET Advisors in Walnut Creek, California, which owns Berkshire shares.

Two credit rating agencies took away Berkshire's "triple-A" ratings in 2009, including Moody's Investors Service. Berkshire owns 20.4 percent of Moody's parent, Moody's Corp.