Berkshire Hathaway Inc.’s profits for the first nine months of 2008 fell 52.5% to $4.88 billion. For the quarter, the Omaha, Neb.-based firm reported a 76.8% drop in profits to $1.06 billion.
The nine-month results and the quarterly results reflect respectively $1.39 billion and $1.01 billion in investment and derivative losses.
The company reported $6.27 billion in operating earnings for the nine-month period, a 13.9% decline. For the quarter, operating earnings declined 19.2%, to $2.07 billion.
According to industry consultant, Steven Wevodau, “The steep decline in results is primarily a result of poor underwriting results sustained from hurricanes in addition to lower investment income and derivative contract losses.”
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