Buffett's firm says 3Q profit jumps 72 percent

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Associated Press

Posted on November 2, 2012 at 8:01 PM

OMAHA, Neb. (AP) — Warren Buffett's company says its third-quarter profit soared 72 percent because the value of its investments and derivative contracts improved significantly.

Berkshire Hathaway Inc. said Friday it generated $3.92 billion net income, or $1.58 per Class B share. That's up from $2.28 billion, or 92 cents per share, last year.

Berkshire's revenue grew to $41.05 billion from last year's $33.74 billion.

The three analysts surveyed by FactSet expected Berkshire to report earnings of $1.38 per Class B share on $39.04 billion revenue.

The biggest difference in the quarter was a major swing in the paper value of Berkshire's derivatives tied to equity markets. Berkshire's investment gains and derivative losses combined to add $521 million to net income this year. In 2011, those things drained $1.53 billion from its third-quarter profit.

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