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On February 27, 2009,
reported a 96.0% decline in its Q4 FY08 net earnings due to higher losses on investments and derivative contracts. Net earnings plummeted to $117.00 million or $76.00 per share from $2.95 billion or $1,904.00 per share during Q4 FY07. The latest consensus estimate was for earnings of $1,486.50 per share.
During Q4 FY08, BRK.A's revenue dropped 12.3% to $24.59 billion from $28.04 billion a year ago, dragged down by weak performance from its finance and financial products segment.
Revenue from the insurance and other segment inched down 1.6% to $23.73 billion, hurt by losses from its investments. Within this segment, insurance premiums earned increased 5.1% to $6.62 billion. Sales and service revenues grew 8.4% to $16.44 billion, while interest, dividend, and other investment income rose 5.9% to $1.38 billion. However, investment losses stood at $706.00 million compared to a gain of $1.36 billion in the year-ago quarter. In addition, revenue from the utilities and energy segment surged 34.9% to $4.24 billion, helped by an 18-times increase in other revenue. Moreover, the financial and financial products segment recorded negative revenue of $3.38 billion compared to positive revenue of $771.00 million, adversely affected by the loss on derivative contracts. Within this segment, interest income dipped marginally to $430.00 million, while investment gain dropped 50.0% to $1.00 million. Finally, losses from derivatives expanded to $4.61 billion from $429.00 million in Q4 FY07.
Berkshire increased its stake in Posco, the South Korean steelmaker, to 5.2% from 4.5% in FY07.
For FY08, BRKA's total revenue slipped 8.8% to $107.79 billion from $118.25 billion in FY07. Moreover, net income slumped 62.2% to $4.99 billion, or $3,224.00 per share, from $13.21 billion, or $8,548.00 per share, a year ago.