Berkshire Profit Climbs 46%

(RTTNews) - Billionaire Warren Buffett's Berkshire Hathaway Inc. (BRK.A; BRK.B) said Friday after the markets closed that its second quarter profit climbed 46% from last year, helped by investment and derivative gains as well as strong performance of its non-insurance businesses.

The company's operating earnings for the quarter, which excludes investment and derivative gains/losses, grew 5%.

Second quarter operating earnings from the company's insurance underwriting businesses fell 14% to $530 from $619 million in the prior year quarter. Berkshire's insurance group include GEICO and General Re among others.

Insurance investment income for the quarter grew 7% to $1.14 billion from $1.07 billion a year ago.

Second quarter operating earnings from the company's non-insurance businesses increased 8% to $2.37 billion from $2.00 billion a year ago. Berkshire completed its acquisition of railroad operator Burlington Northern Santa Fe in February 2010 and lubricant maker Lubrizol Corp. in September 2011.

The Omaha, Nebraska-based company reported net earnings for the second quarter of $4.54 billion or $2,763 per Class A equivalent share, compared to $3.11 billion or $1,882 per Class A equivalent share for the year-ago quarter.

The latest quarter results include $622 million in investment and derivative gains, compared to $612 million in investment and derivative losses in the second quarter of last year.

Operating earnings rose to $3.92 billion or $2,384 per Class A equivalent share in the second quarter from $3.72 billion or $2,252 per Class A equivalent share in the prior year quarter.

Total revenue for the second quarter rose 16% to $44.69 billion from $38.55 billion in the same quarter last year.

The company's book value increased 7.6% from 2012 year-end to $122,900 per Class A equivalent share at June 30, 2013.

Buffett was disappointed for his inability to make a major acquisition in 2012, but he struck a deal early this year. In mid-February, ketchup maker H.J. Heinz Co. agreed to be taken private by an investment consortium comprised of Berkshire and New York-based investment fund 3G Capital in a deal valued at about $28 billion, including assumed debt. The deal closed last month.

In May, MidAmerican Energy Holdings Co., a subsidiary of Berkshire Hathaway, agreed to buy NV Energy, the Nevada-based electric utility, for about $5.6 billion in cash.

Buffett, who is also one of the world's richest men, has run Berkshire for nearly five decades. He owns more than $40 billion of stock in Berkshire, which has over 80 units with businesses as varied as insurance, restaurants, furniture, clothing, candy companies, natural gas, railroad and corporate jet leasing.

Berkshire also holds significant stakes in many top-notch companies such as Coca-Cola Co. (KO), Wells Fargo & Co. (WFC), American Express Co. (AEP), International Business Machines Corp. (IBM), Visa, Inc. (V) and Procter & Gamble Co. (PG) among others.

Berkshire's Class A shares closed Friday's regular trading session at $176,500, up $800. The company's Class B shares closed the day's session at $117.82, up 54 cents. The Class B shares are currently gaining 0.49% in after hours trading.