Berkshire reports a 62 percent drop in 2008 profit
Josh Funk, Associated Press, Omaha | Sat, 02/28/2009 10:24 PM
Warren Buffett's Berkshire Hathaway Inc. has reported a 62 percent drop in its 2008 net income because investment and derivative losses of nearly $7.5 billion weighed on the results.
Billionaire Buffett details his worst year leading Berkshire in a shareholder letter issued Saturday.
Berkshire reported $4.99 billion net income, or $3,224 per share, in 2008. That's down from $13.21 billion, or $8,548, in 2007.
Buffett says the Omaha-based company's book value - assets minus liabilities - declined 9.6 percent to $70,530 per share in 2008.
Berkshire's book value declined only one other time under Buffett, and that was a 6.2 percent decline in 2001.
Two analysts surveyed by Thomson Reuters on average expected Berkshire to report a 2008 profit of $5,534.50 per share.
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