Berkshire Hathaway Operating Earnings Boosted by Currency Effects
Berkshire Hathaway's operating earnings rose to $13 billion in the second quarter, a 16% increase from last year. This growth is largely due to currency effects on the company's non-U.S.-dollar debt, which swung from an $877 million loss to a $326 million gain.
The revaluation of these borrowings, denominated in euros, pounds, and yen, accounted for about $1.2 billion of the increase. This phenomenon is not unique to this quarter, as currency effects also contributed to operating earnings growth in the first quarter.
Striping out the currency swing, operating earnings grew about 5%. The company's manufacturing, service, and retailing segments saw a 24% year-over-year increase in earnings, while its insurance business experienced a decline in underwriting profit and investment income.