POST Online Media Lite Edition



 

Berkshire Hathaway Q3 profit hit by Tesco

Staff writer |
Berkshire Hathaway said its third quarter profit fell 8.6% from last year, hurt mainly by impairment charges related to its investments in equity securities of British retailer Tesco.

Article continues below






The company's operating earnings for the quarter rose from last year, helped by strong earnings from the company's non-insurance businesses.

Operating earnings for the company's insurance underwriting business surged to $629 million in the third quarter from $170 million a year ago, while Insurance investment income fell to $811 million from $861 million last year.

Railroad's operating earnings for the quarter rose 5% to $1.04 billion, while operating earnings from Berkshire's utilities and energy businesses jumped 48% to $697 million.

For the third quarter ended September 30, 2014, the company reported net earnings of $4.62 billion or $2,811 per Class A share, compared to $5.05 billion or $3,074 per Class A share for the year-ago quarter.

Other-than-temporary impairment charges related to the investments in equity securities of Tesco were $678 million in the third quarter of 2014.

Excluding items, operating earnings for the third quarter rose to $4.72 billion or $2,876 per Class A share from $3.66 billion or $2,228 per Class A share in the prior year quarter.

Total revenue for the third quarter rose 10% to $51.20 billion from $46.54 billion in the same quarter last year.

Since the beginning of the year, Berkshire's shareholders' equity has increased $15.6 billion and its book value per Class A share has increased by 7.1% to $144,542 as of September 30.


What to read next

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