Berkshire Hathaway 2Q Earnings Up 33%

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Berkshire Hathaway 2Q Earnings Up 33%

Omaha, NE, August 6, 2007--Berkshire Hathaway Inc reported second quarter earnings that were up 33% as higher insurance and utility profits offset pressure on housing-related businesses from the slowing real estate market.

 

The company reported net earnings that increased to $3.12 billion, or $2,018 per Class A share, from $2.35 billion, or $1,522, a year earlier.

 

Operating profit, excluding investment gains, rose 22% to $2.51 billion, or $1,625 per share, from $2.05 billion, or $1,331.

 

Analysts had forecast EPS of $1,460.

 

The company reported revenue that increased 13% to $27.35 billion.

 

Insurance underwriting profit at the company rose 70% to $632 million, and insurance investment income rose 10 % to $862 million. Earnings from utilities and energy rose 46 % to $231 million.

 

These helped offset declines in pre-tax profit of 34% at Shaw Industries and 20 % in furniture and transportation equipment leasing. Profit from the company’s manufactured housing unit rose 4%.

 

Berkshire's equity investments rose 13% since March to $73.61 billion, while its fixed-income investments grew more - up 15% to $24.92 billion. These were before the recent stock market swoon, where investors have tried to reduce their perceived exposure to market risk.

  

Insurance generated about half of Berkshire's profit. Underwriting gains before taxes at Geico Corp rose 13 %, as the auto insurer boosted premiums 7%. Gains from underwriting more than doubled Berkshire's reinsurance group and its General Re Corp reinsurance unit.

 

Berkshire owns more than 70 companies that make such things as paint, ice cream and underwear. It also invests in stocks including American Express Co, Coca-Cola Co and Procter & Gamble Co. The company's book value was $115.27 billion on June 30 versus $108.42 billion at year end. 


Related Topics:Shaw Industries Group, Inc.