Berkshire profit falls on lower gains, underwriting loss

[NEW YORK] Warren Buffett's Berkshire Hathaway Inc on Friday said second-quarter profit fell 15 per cent, reflecting lower investment gains and a loss from insurance underwriting.

Net income for the Omaha, Nebraska-based conglomerate fell to US$4.26 billion, or US$2,592 per Class A share, from US$5 billion, or US$3,042 per share.

Operating profit declined 11 per cent to US$4.12 billion, or US$2,505 per Class A share, from US$4.61 billion, or US$2,803 per share.

Analysts on average expected operating profit of about US$2,791 per share, according to Thomson Reuters.

Mr Buffett believes operating income is a better gauge of how Berkshire and its more than 90 businesses are doing than net income, which fluctuates more because it incorporates investment gains and losses.

REUTERS