Financial Report Financial reports from the largest companies of the world

Berkshire Hathaway recorded 58% profit decrease

The Warren Buffett's conglomerate - Berkshire Hathaway Inc announced that first-quarter profit fell 58% from a year earlier because of insurance losses from major natural disasters in Japan, New Zealand and Australia. The investors company made large lost in forex tranding. Spread Betting and Forex Reviews are showing bad investing of the company and this caused big loses of the Warren Buffett's fund. But this was not the worst department in the company.
The Berkshire's net earnings for the quarter ending in March amounted to 1.5 billion dollars or 917 dollars per share and year earlier it was 3.6 billion, or 2,272 dollars per share. The revenue rose to 33.7 billion dollars to 32 billion a year ago. The biggest problem in the quarter results are insurance losses worth $ 1.7 billion related to the earthquake and tsunami in Japan on March 11 earthquake in New Zealand on 22 February and floods in Australia.
"This probably was the second worst quarter for the insurance industry to disasters worldwide", said Buffett in front of the shareholders.
Despite losses in the insurance business conglomerate has contributed 131 million dollars in net profit for the quarter of Berkshire, which is significantly less than $ 1.2 billion a year earlier.
Berkshire owns about 80 subsidiaries, including companies in the textile, furniture and jewelry sector. Insurance business and utility companies usually form more than half of net profit. Berkshire also has major investments in companies like Coca-Cola Co. and Wells Fargo & Co. The results of the conglomerate are supported by strong performance of the railway company Burlington Northern Santa Fe, which acquired a year ago. Railway segment has contributed 607 million dollars in net profit to 282 million a year earlier, although the results for the previous year does not include the entire quarter. Manufacturing, retail trade and services have generated a profit of 558 million dollars, more than 477 million dollars a year earlier. The utilities and those in the energy sector, which includes MidAmerican Energy, has added 301 million dollars in net profit of 223 million to Berkshire dollars a year ago.