Berkshire Hathaway Earnings Double

Omaha, NE, Aug. 11--Berkshire Hathaway Inc.'s earnings before realized investment gains rose 32% to $1.32 billion from $1 billion. The holding company said net income more than doubled, reflecting an increase in investment gains. Net income was $2.23 billion, or $1,452 a share in the latest quarter, compared with $1.045 billion, or $681 a share, a year ago. Realized investment gains rose to $905 million from $43 million. Revenue for the quarter rose 44% to $14.4 billion from $10.03 billion. The revenue increase reflected the investment gains and the May 23 acquisition of McLane Co. McLane added about $1.7 billion to Berkshire's second-quarter revenue. Berkshire Hathaway's insurance group, which includes the Geico, General Re and Berkshire Hathaway brands, posted $6.34 billion of revenue, up from $5.13 billion a year ago, the company reported. Berkshire Hathaway said revenue increased at Shaw Industries and at the apparel and retail segments. Revenue declined at Scott Fetzer, finance and financial products and flight services. Building products revenue was flat. The company noted that Geico's premium volume rose 16.3% in the second quarter, and said "this trend continues in the third quarter." A Tennessee Court of Appeals ordered a halt Friday to Berkshire's acquisition of Clayton Homes Inc. pending a lower court consideration of a Colorado pension plan's challenge. The move put a cloud over the merger, since the court's order came a day after the two companies said the $1.7 billion acquisition had been completed.

Related Topics:Shaw Industries Group, Inc.

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