Berkshire (Warren Buffett) reports net income down 9 percent
Source: Omaha World Herald
By Steve Jordon
Changes in the estimated value of some of Berkshire Hathaway Inc.'s investments pushed its second-quarter net income down, but the Omaha company benefited from a lack of natural disasters and gains by its operating businesses.
Berkshire said Friday that it had net income of $3.11 billion, or $1,882 per share, in the second quarter of this year, down 9 percent from $3.42 billion, or $2,072 per share, in the same period last year. Analysts had expected net income of $1,785 per share.
Revenue for the three-month period that ended June 30 was $38.55 billion, up slightly from $38.27 billion in the second quarter of 2011.
The decline in net income came from a $1.07 billion paper loss in the value of Berkshire's derivative investments, a series of insurance-like transactions started several years ago by Warren Buffett, chairman and CEO.