Berkshire Hathaway Reports 33% Jump in Earnings
Warren Buffett's Berkshire Hathaway said on Friday second-quarter earnings rose 33%, helped by higher insurance underwriting profit and investment income.
Net income for the Omaha, Nebraska-based insurance and investment company rose to $3.12 billion, or $2,018 per Class A share, from $2.35 billion, or $1,522, a year earlier.
Operating profit, excluding gains from investments and derivatives, rose 22% to $2.51 billion, or $1,625 per share, from $2.05 billion, or $1,331.
Analysts on average had expected profit of $1,460 per share, according to Reuters Estimates.
Revenue rose 13% to $27.35 billion.
Profit from insurance underwriting rose 70% to $632 million, and insurance investment income rose 10% to $862 million. Profit in non-insurance businesses rose 13% to $1.05 billion.
Known as the Oracle of Omaha, Buffett has transformed Berkshire since 1965 from a failing textile company into a $168 billion conglomerate by acquiring out-of-favor companies with consistent earnings and capable management, and investing in stocks.
Berkshire's Class A shares closed on Friday down $100 at $109,990 and its Class B shares rose $11 to $3,599. The Class A shares are little changed this year, while the Standard & Poor's 500 and insurance indexes are up 1% and down 9%, respectively.