Berkshire Shares Hit Record After Big 3Q Profit, S

Omaha, NE, November 6, 2006--Berkshire Hathaway shares climbed to a record today after the insurance-focused conglomerate run by Warren Buffett reported big third-quarter profits that were fueled by a benign hurricane season. Shaw Industries revenue is up by 6% for the first nine months of the year, according to Marketshare Revenues of Shaw Industries in the third quarter of 2006 were relatively unchanged from 2005 and for the first nine months increased $255 million (6%) over 2005. The revenue increase in the first nine months of 2006 was due to increased average net selling prices partially offset by a 5% reduction in volume. The comparative decline in 2006 unit sales versus 2005 accelerated during the third quarter. Management attributed this to a slowing of housing construction in 2006 and the acceleration of customer purchases in the third quarter of 2005 in anticipation of fourth quarter price increases. Pre-tax earnings for the third quarter of 2006 declined $7 million (5%) and for the first nine months increased $90 million (24%) over the corresponding 2005 periods. The increase in pre-tax earnings in the first nine months of 2006 was primarily attributable to the integration of carpet backing and nylon-fiber manufacturing operations acquired in the fourth quarter of 2005. These two acquisitions allow Shaw to internally produce most of its carpet-backing needs and to secure a more stable raw material source. Sales volume is expected to continue to slow over the remainder of 2006.

Related Topics:Shaw Industries Group, Inc.

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