Update: Berkshire Releases Earnings Report

By: Associated Press Email
By: Associated Press Email

Investors always examine Berkshire Hathaway's earnings reports carefully for clues about what CEO Warren Buffett might invest in. On Friday, Warren Buffett's company says its third-quarter profit soared 72 percent because the value of its investments and derivative contracts improved significantly.

Berkshire Hathaway Inc. said Friday it generated $3.92 billion net income, or $1.58 per Class B share. That's up from $2.28 billion, or 92 cents per share, last year.

Berkshire's revenue grew to $41.05 billion from last year's $33.74 billion.

The three analysts surveyed by FactSet expected Berkshire to report earnings of $1.38 per Class B share on $39.04 billion revenue.

The biggest difference in the quarter was a major swing in the paper value of Berkshire's derivatives tied to equity markets.

Berkshire's investment gains and derivative losses combined to add $521 million to net income this year.

In 2011, those things drained $1.53 billion from its third-quarter profit.

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