Berkshire Hathaway 2nd-quarter profit falls
NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway (BRKa.N)(BRKb.N) said on Friday second-quarter profit fell 8 percent, hurt by weaker results from insurance underwriting.
Net income for the Omaha, Nebraska-based insurance and investment company fell to $2.88 billion (1.5 billion pounds), or $1,859 per Class A share, from $3.12 billion, or $2,018, a year earlier.
Operating profit declined 10 percent to $2.27 billion, or $1,465 per share, from $2.51 billion, or $1,625, a year earlier.
On that basis, analysts on average expected profit of $1,370 per share, according to Reuters Estimates. Revenue rose 10 percent to $30.09 billion.
Insurance underwriting profit fell 43 percent to $360 million, although earned premiums rose 5 percent to $6.23 billion.
Berkshire was able to boost insurance premiums following Hurricane Katrina in 2005, but Buffett has said prices and profit margins have since fallen.
Insurance typically comprises about half of Berkshire's results. Buffett told shareholders in May not to expect the company to replicate its past results.
Second-quarter investment income rose 3 percent to $884 million, while profit from non-insurance businesses rose 4 percent to $1.09 billion. Continued...
Credit headwind
News headlines speak of recovery, but financing is still a big problem in Germany. The dearth of credit to tide firms over is frustrating policymakers, who are blaming reluctant banks and there is little agreement on how best to increase lending flows. Full Article
UK
US
Obama arrives in Ghana