Berkshire profit falls 64%, revenue down year over year
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May 2nd, 2008 • Related • Filed Under
Berkshire reported earnings for first quarter 2008. Revenue for the quarter was down year over year. Operating earnings for Q1 2008 was $1.93 billion compared to $2.21 billion one year ago. Net income was $607 per class A share, down from $1682 one year ago.
Fall in earnings resulted due to an unrealized $1.6 billion pretax loss on its derivative contracts, and lowered profits from its insurance businesses. In a letter to shareholders, company chairman and CEO Warren Buffet highlighted the earnings volatility due to positions help by Berkshire in the derivative contracts. However, Buffet assured investors that this is a sound long term strategy for the company.
