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Berkshire Hathaway Q2 net income went up 46%

Staff writer |
Berkshire Hathaway's announced a 46% increase in its second-quarter profit. The firm reported net income of $4.54 billion, or $2,763 per Class A share, compared to $3.1 billion, or $1,882 per Class A share, last year.

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The biggest factor behind the big jump in earnings was the value of Berkshire's investments and derivatives. This year, those were worth $622 millio, compared to the last year when the firm recorded a $612 millio loss.

Berkshire Hathaway's revenue grew 16% to $44.69 billion. Without investments and derivatives, the Omaha-based company reported operating earnings of $3.92 billion, or $2,384 per Class A share. That's an increase from $3.72 billion a year ago, or $2,252 per Class A share.

BNSF railroad performed well in the second quarter and contributed $884 million to the firms profits, up from $802 million a year ago. BNSF's volume was up 3% this year and rates improved 2 percent as the railroad hauled more coal, crude oil and intermodal containers of products.

Berkshire's insurance businesses, which include reinsurance giant General Re and car insurer Geico, contributed $530 million to Berkshire's net income in the quarter. That was down from $619 million last year.

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