Berkshire's net income drops 48%

Berkshire Hathaway Inc., the investment company run by billionaire Warren Buffett, yesterday said quarterly profit fell 48 percent to the lowest level in nearly four years, hurt by nearly $3 billion of losses from hurricanes Katrina and Rita. Third-quarter net income for the Omaha-based company, whose largest business is insurance, fell to $586 million, or $381 per class A share, from $1.14 billion, or $739 per share, a year earlier. Per-share figures are high because Berkshire has few shares outstanding. Revenue rose 7 percent to $20.53 billion. Expenses increased 15 percent to $19.84 billion. Results were hurt by an estimated $2.99 billion of losses from Hurricanes Katrina and Rita. This included $118 million at auto insurer Geico, $602 million at General Re Corp., and $2.27 billion within the company's reinsurance group.

Among Berkshire's other companies are Dairy Queen and Fruit of the Loom.

In trading, Berkshire class A shares were unchanged at $88,300, and its class B shares fell $16 to $2,919.