OMAHA, Neb. - Warren Buffett's company reported a 40% drop in second-quarter profit because largely unrealized derivative losses of $1.4 billion outweighed improvements at Berkshire Hathaway Inc.'s (BRK.A, BRK.B) operating companies.
Berkshire reported $1.97 billion net income Friday, or $1,195 per Class A share. That's down from $3.3 billion, or $2,123 per share, a year ago. Its revenue grew 7% to $31.7 billion.
Those results fell short of the $1,360.44 profit per share analysts expected.
But there were several bright spots.
Berkshire's insurance unit contributed $462 million in underwriting profit, up from $66 million last year.
Burlington Northern Santa Fe railroad added $603 million in its first full quarter as part of Berkshire.
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