Berkshire Hathaway generated $2.9 billion in net income, or $1,859 per share, during the second quarter ending June 30, down from $3.1 billion net income, or $2,018 per share, posted in the year-ago period.
Berkshire posted $30.1 billion in revenue during second-quarter 2008, up from $27.3 billion last year.
According to the company, unrealized derivative losses for the second quarter have declined from the $1.67 billion reported in the first quarter. But Berkshire said it doesn't think investors should pay much attention to the amount of derivative or investment gains or losses in any given quarter.
In Buffett’s opinion, the long-term derivative contracts written by the company will ultimately prove to be profitable.
Berkshire's derivatives fit into two major categories. Berkshire will have to pay on some of the contracts if certain U.S. entities default on their credit. Most of the other derivatives will only be paid if certain stock indices are lower in 15 or 20 years than they were when the contract was written.
The company reported a $2.3 billion operating profit, or $1,465 per share, during the quarter, also down from the $2.5 billion operating profit, or $1,625 per share, reported in the second quarter a year ago.