POST Online Media Lite Edition


Berkshire Hathaway Q3 profit down

Staff Writer |
Berkshire Hathaway reported a drop in profit for the third quarter, as its insurance business reported losses hurt largely by Hurricanes Harvey, Irma and Maria and an earthquake in Mexico.

Article continues below

Berkshire is a holding company with a number of operating subsidiaries like auto insurer Geico, reinsurer General Re, railroad BNSF, lubricant maker Lubrizol, energy utilities and a host of other manufacturing and retail companies.

The company's insurance underwriting business reported an operating loss of $1.44 billion compared to an earnings of $272 million last year.

Insurance investment income rose to $1.04 billion from $850 million last year. Railroad, utilities and energy unit's operating earnings for the quarter rose to $2.01 billion from $1.95 billion last year.

Omaha, Nebraska-based Berkshire Hathaway reported third-quarter profit of $4.07 billion or $2,473 per class A share, down from $7.20 billion or $4,379 per share Class A share last year.

Results for the quarter were impacted by three major hurricanes - Harvey, Irma and Maria - and an earthquake in Mexico.

Excluding items, operating earnings for the third quarter was $3.44 billion or $2,094 per share, down from $4.85 billion or $2,951 per share last year.

At September 30, 2017, Berkshire's book value increased by 8.9% since year-end 2016 to $187,435 per Class A equivalent share.

What to read next

Berkshire Hathaway operating profit 20% better
Berkshire Hathaway Q1 profit up, operating income down
Berkshire Hathaway Q2 profit $5 billion