$3 billion bad weather blast batters Berkshire

3 billion bad weather blast batters Berkshire

Bad weather weighed on results at Warren Buffett's Berkshire Hathaway Inc, as losses from insurance claims tied to Hurricanes Harvey, Irma and Maria and an natural disaster in Mexico contributed to a 43 percent drop in third-quarter profit.

On a per-share basis, the Omaha, Nebraska-based company said it had profit of $2,473.

Mother Nature took a big bite out of the quarterly profits of billionaire Warren Buffett's sprawling conglomerate.

Berkshire reported third-quarter earnings of $2,094 per share, falling well short of Wall Street analysts forecast of $2,402, according to earnings-tracker Thomson Reuters.

Berkshire lost $1.44 billion from insurance underwriting in the quarter and $1.73 billion from January to September, putting it on pace for its first full-year underwriting loss since 2002.

Operating earnings breakdown: Insurance underwriting, -$1.44B (vs. a year-ago $272M); Insurance-investment income, $1.04B (up 23%); Railroad, utilities and energy, $2B (up 2.7%); Other businesses, $2.04B (flat).

Investors have remained confident in Berkshire's prospects, and have boosted its share price 15 percent this year.

Losses could have been even greater had Berkshire not cut back exposure in reinsurance, including for major catastrophes, after a glut of capital caused premiums to decline.

Some of its cash hoard will eventually be used to buy 80 percent of Pilot Flying J, the largest USA truck stop operator.



Otras noticias