In brief: Berkshire Hathaway reports 37 percent decline in second quarter
OMAHA, Neb. – Warren Buffett’s Berkshire Hathaway reported a 37 percent drop in its second-quarter profit as the paper value of its investments fell and its insurance companies reported an underwriting loss.
Berkshire Hathaway’s net income fell to $4.01 billion, or $2,442 per Class A share. That’s down from last year’s $6.4 billion, or $3,889 per share. Those results were helped by a $1.1 billion paper gain on a stock exchange deal.
Revenue grew 3 percent to $51.4 billion.
The four analysts surveyed by FactSet expected Berkshire to report operating earnings per Class A share of $2,997.14. By that measure Berkshire reported per-share profit of $2,367, down from $2,634.
Railroad safety plans scant despite looming deadline
WASHINGTON – Only a handful of railroads are close to meeting a deadline this year to install safety technology that can prevent many crashes, including derailments due to excessive speed like the deadly Amtrak crash in Philadelphia in May, according to a government report released Friday.
Only three railroads have submitted safety plans to the government, a necessary step before they can put the technology – positive train control – into operation, the Federal Railroad Administration report said. They are BNSF Railway, the nation’s second-largest freight railroad, and two commuter railroads: Metrolink in the Los Angeles area and the Southeastern Pennsylvania Transportation Authority in the Philadelphia area.
Court sides with pill maker in off-label promotion case
WASHINGTON – The maker of a prescription fish-oil pill won an early victory Friday against the Food and Drug Administration over its right to publicize unapproved uses of its drug.
The preliminary ruling in U.S. District Court could strengthen the pharmaceutical industry’s ability to distribute information about drug uses that have not been cleared by the FDA. That issue has been contested for years by the FDA and the companies it regulates.
According to Friday’s decision, Amarin has the First Amendment right to give doctors truthful information about non-approved indications of its drug Vascepa, which is used to lower a certain kind of fat.
Keurig layoffs will hit hard in town rebuilding after storm
WATERBURY, Vt. – For years, the company now known as Keurig Green Mountain provided well-paying, stable employment in Vermont. That’s about to change.
The company announced this week that the bulk of about 200 layoffs in the state would be in Waterbury, a town still rebuilding after the loss of about 1,100 jobs four years ago when Tropical Storm Irene flooded the state.
On Wednesday, Keurig announced it was cutting about 330 jobs of a total of about 6,600 after disappointing sales numbers.
Airline technology firm investigating breach
DALLAS – A spate of recent computer-system breaches has spread into the travel industry, hitting a company that provides technology used for airline and hotel reservations.
Sabre Corp. said Friday it is investigating a “cybersecurity incident” but isn’t sure yet what if any information was stolen.
American Airlines, which uses Sabre, said it is investigating but has found no evidence of a breach. It has hired outside experts for assistance.