Berkshire's manufacturing revenue surged 28% to $12.2 billion, lifted by the company's recent $4.2 billion purchase of battery maker Duracell and its $32.7 billion purchase of aerospace parts company Precision Castparts.
Sales in the company's service and retailing operations, however, fell 1% to $18.4 billion. The decline was mostly attributable to a 14% year-over-year decrease in revenue at NetJets, reflecting both lower aircraft sales and reduced fuel surcharge revenue due to lower fuel prices.
In total, net earnings from Berkshire's manufacturing, service, and retailing segment rose 14% to $1.5 billion.
Insurance operations
Underwriting profits improved to $337 million, up from a loss of $38 million in the year-ago quarter as customer additions and rate hikes boosted results at GEICO, and Berkshire's reinsurance business benefited from changes in foreign exchange rates.
GEICO wrote 11.4% more in premiums compared with the prior-year period, and the crown jewel of Berkshire's insurance subsidiaries delivered $150 million in pre-tax underwriting gains, a 183% year-over-year improvement.
In addition, Berkshire Hathaway Reinsurance Group generated an underwriting gain of $184 million, compared to a loss of $411 million in Q2 2015. The business benefited from foreign currency gains and lower estimated losses on prior-year policies.
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