Buffett’s Firm Posts 35% Rise in Earnings

Multibillionaire Warren Buffett’s investment company, Berkshire Hathaway Inc., reported a 35.7% rise in third-quarter earnings and credited the performance of its automobile insurer, Geico Corp. Net earnings rose to $264 million, or $218 a share, compared with $194.5 million, or $163, last year. “The real news at Berkshire this year is the exceptional performance of Geico,” Buffett said. “There has been a substantial acceleration in the growth of voluntary auto business accompanied by outstanding underwriting profitability. We expect continued growth in new business.” Berkshire completed its buyout of Geico on Jan. 2, purchasing the 49% it didn’t already own. . . . Seattle-based Nordstrom Inc. reported higher third-quarter earnings, but May Department Stores Co.’s performance deteriorated slightly. Nordstrom’s net earnings rose 15.6% to $34 million, or 42 cents a share, from $29.4 million, or 36 cents, a year ago. St. Louis-based May said its third-quarter earnings fell nearly 13% after a spinoff of its Payless ShoeSource division. It earned $118 million, or 44 cents a share, down from $135 million, or 50 cents, a year ago.