Around the nation
Buffett's company has earnings boost
OMAHA, NEB. — Billionaire Warren Buffett's holding company Berkshire Hathaway reported Friday that its net income jumped nearly 33 percent during the second quarter because of strong performance from its insurance division.
Berkshire said it earned $3.1 billion, or $2,018 per Class A share during the quarter that ended June 30. That's up from $2.3 billion, or $1,522 per share, in the same period last year.
Berkshire said its companies and investments generated $27.3 billion in revenue for the quarter, up from $24.1 billion a year ago. Berkshire's insurance business pulled in nearly $6 billion in premiums during the quarter, up from $5.8 billion a year ago.
Companies including Geico and Berkshire Hathaway Reinsurance Group recorded a $632 million underwriting profit during the quarter, up from $371 million in 2006.
Energy futures fall after job reportNEW YORK — Energy futures declined Friday as news of a cooling U.S. job market outweighed concerns about tight oil supplies.
The Labor Department reported that the unemployment rate rose to 4.6 percent in July, a six-month high. That suggests the economy might be slowing, which could lower demand for oil and gasoline.
Partly offsetting the impact of the jobs data were fresh comments from OPEC suggesting the oil cartel won't boost production when it meets next month.
Light, sweet crude for September delivery fell $1.38 to settle at $75.48 a barrel on the New York Mercantile Exchange. While crude futures set new price records above $78 this week, they ended the week $1.54 a barrel, or 2 percent, lower.
September gasoline fell 0.72 cent to $2.029 a gallon. Brent crude lost $1.01 to settle at $74.75 a barrel in London.
In other New York trading, September heating oil fell 4.06 cents to $2.034 a gallon, and natural gas settled 1.6 cents lower at $6.09 per million British thermal units.
Senators urge SEC to change methodsTwo Republican senators ended a yearlong investigation into whether the Securities and Exchange Commission mishandled insider-trading allegations that ensnared Morgan Stanley Chief Executive Officer John Mack , calling on the agency to change its methods to restore "public confidence."
"Our investigation uncovered real failures that need real solutions," Sens. Charles Grassley of Iowa and Arlen Specter of Pennsylvania, said in a report released Friday. "The damage to public confidence in the SEC as a fair and impartial regulator must be repaired."
The lawmakers initiated their review following allegations that Mack's political influence as head of a major securities firm shielded him from an SEC probe. Gary Aguirre, a former agency attorney fired in 2005, said supervisors blocked him from pursuing an investigation into whether a hedge fund bet on information provided by Mack.
The SEC should establish uniform procedures for how it handles investigations, according to the report, which was prepared by staff members of the Senate Finance and Judiciary committees.
SEC Chairman Christopher Cox said the agency will follow up on the report's recommendations with "energy and urgency."
Mack, 62, was chairman of Pequot Capital Management, a hedge-fund firm, for a year before New York-based Morgan Stanley hired him two years ago.
The SEC questioned Mack last August about suspicious trades Pequot made ahead of General Electric's July 2001 purchase of Heller Financial. At the time of the trades, Mack was arranging an investment in a Pequot-controlled fund, according to the Senate report.
Last November, the SEC sent Mack and Pequot letters saying it had closed the case and that no action would be taken against them. Both Mack and Pequot have repeatedly denied wrongdoing. A Morgan Stanley spokeswoman declined to comment.
Four suitors want to acquire MidwestMILWAUKEE — Midwest Air Group , long the object of a takeover attempt by AirTran Holdings, has at least three other suitors that want to buy the regional airline.
The Milwaukee-based operator of Midwest Airlines said Friday it has signed confidentiality agreements with four interested parties. That means those four parties can begin looking at Midwest's corporate files as Midwest opens itself up for a possible sale.
Midwest did not name the four companies or specify if they were airlines, other types of companies or institutional investors.
But one of them is certainly AirTran Holdings, which operates low-cost AirTran Airways. Midwest announced Tuesday that a committee of its board of directors would start discussions with AirTran in addition to other potential acquirers.
The five-member committee will explore Midwest's options and make a recommendation to the full board. AirTran has bid $389 million.
In other news ...
• Procter & Gamble Co., boosted by strong sales of new Gillette shavers and by new products in longtime brands such as Tide and Crest, reported that profits for its fourth quarter and the full year each rose 19 percent. P&G also announced plans to step up stock buybacks. Net income for the quarter ended June 30 rose to $2.27 billion, or 67 cents per share, from $1.9 billion, or 55 cents per share, a year earlier.
• The Washington Post Co. reported a 13 percent drop in quarterly earnings, as declining revenue from its flagship paper continued to cancel out gains in the company's education unit. For the second quarter, the company reported earnings of $68.6 million, or $7.19 per share, compared with $78.5 million, or $8.17 per share, in the year-ago quarter.
• Weyerhaeuser Co., one of the world's largest lumber and paper producers, said its second-quarter profit dropped sharply because of hefty charges and weakness in the housing construction markets. Net income fell to $32 million, or 15 cents per share, in the three months ended June 30, compared with $298 million, or $1.19 per share, a year ago.