World Economy

May 6, 2008

all of 64% of quarterly earnings Berkshire Hathaway

Fall of 64% of quarterly earnings Berkshire Hathaway


OMAHA, Nebraska (Reuters) - The insurance company and investment billionaire Warren Buffett, Berkshire Hathaway, reported a drop in quarterly earnings due to losses related to derivatives and a sharp drop in premiums insurance.

The group identified the first quarter of the year a net profit of 940 million dollars, a sharp decline of 64% compared to $ 2.6 billion posted on the same period of last year.

The operating profit decreased to about 13% to 1.93 billion dollars against 2.21 billion a year earlier. Per share of Class A, earnings amounted to $ 1,247. On that basis, analysts polled by Reuters tablaient on average 1,477 dollars.

Turnover fell by 24% to 25.18 billion.

The result was sealed by 991 million after-tax losses related primarily to contracts betting on the possibility of seeing an obligation "junk bond" to avoid a default and a rising stock market indices.

Buffett warned in February in a letter to its shareholders that derivatives could make the quarterly results of the company volatile.

Warren Buffett also said Saturday expect that the euro and the pound sterling generally retain their gains against the dollar, fiscal policy and trade USA weighing its eyes to the value of the greenback.

He also expressed his desire to acquire in Germany if some family businesses were sold.

by erectusplus at 9:58 AM |