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Berkshire Hathaway 2Q profit jumps 41 percent
Warren Buffett's company on Friday reported a 41 percent jump in its second-quarter profit that was boosted by a paper gain from a stock-swap deal completed earlier this year
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arren Buffett's company on Friday reported a 41 percent jump in its second-quarter profit that was boosted by a paper gain from a stock-swap deal completed earlier this year.
But even without the big investment gains, Berkshire Hathaway Inc. reported solid performances at most of its 80-odd subsidiaries, which include BNSF railroad and Geico insurance.
Berkshire said its overall net income grew to $6.4 billion, or $3,889 per Class A share. That's up from $4.54 billion, or $2,763 per Class A share, in the same quarter a year ago.
Berkshire's revenue improved 11 percent to $49.76 billion from last year's $44.69 billion.
Berkshire agreed earlier this year to acquire a Miami-based TV station from Graham Holdings Co. in exchange for most of its shares in the company that once owned The Washington Post. As part of that deal, Berkshire and Graham Holdings exchanged assets worth roughly $1.1 billion.
Berkshire recorded a $1.1 billion gain in the second quarter because that's when it took ownership of the WPLG television station and completed the exchange.
Buffett urges investors to pay more attention to the company's operating earnings because they exclude the swings in the value of investments and derivatives, which can vary greatly from quarter to quarter. Berkshire's operating earnings improved 11 percent to $4.3 billion, or $2,634 per Class A share.
Four analysts surveyed by FactSet expected Berkshire to report operating earnings per Class A share of $2,485.21.
Berkshire officials do not typically comment on their quarterly earnings reports, and they did not immediately respond to an interview request on Friday.
