NEW YORK (Reuters) - Berkshire Hathaway Inc. (BRKa.N: Quote, Profile, Research) (BRKb.N: Quote, Profile, Research), the investment company run by billionaire Warren Buffett, on Friday said quarterly profit fell 48 percent to the lowest level since 2001, hurt by nearly $3 billion of losses from Hurricanes Katrina and Rita.

The company also reduced its stake in foreign currency contracts to $16.5 billion on September 30 from $21.5 billion three months earlier. Buffett has bet against the dollar since 2002 amid concern that high U.S. trade and budget deficits might cause non-U.S. investors to pull money from the country.

Third-quarter net income for Omaha, Nebraska-based Berkshire, whose largest business is insurance, fell to $586 million, or $381 per Class A share, from $1.14 billion, or $739, a year earlier. Per-share figures are high because Berkshire has few shares outstanding.

Excluding investment gains, profit was $106 million, or about $69 per share. Profit was the lowest since Berkshire earned $95 million in the fourth quarter of 2001, in the aftermath of the September 11 attacks.

"Because he's in the business of insuring catastrophes, Buffett expects to get tagged now and then by a large event," said Keith Trauner, who helps invest $2.5 billion, including nearly $500 million in Berkshire shares, at Fairholme Capital Management in Short Hills, New Jersey. "It sounds like things were pretty good if you take out the insurance loss."

Revenue rose 7 percent to $20.53 billion. Expenses increased 15 percent to $19.84 billion, including a 40 percent jump in insurance losses and related expenses.

Berkshire suffered $2.99 billion of losses from Katrina and Rita, which struck the U.S. Gulf Coast in August and September, respectively. This included $118 million at auto insurer Geico, $602 million at General Re Corp., and $2.27 billion within the company's reinsurance group. Berkshire estimated total industry losses from Katrina and Rita at $60 billion to $70 billion.

In Friday trading, Berkshire Class A shares were unchanged at $88,300, and Class B shares fell $16 to $2,919. Berkshire announced results after U.S. markets closed.

Net underwriting losses rose more than fivefold to $1.17 billion, while net investment income from insurance rose 24 percent to $601 million. Insurance-related revenue rose 10 percent to $6.68 billion.

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