OMAHA, Nebraska: Warren Buffett on Saturday said preliminary first-quarter profit at his Berkshire Hathaway Inc fell about 12 percent, hurt by weaker performance in its railroad and insurance operations.

Quarterly operating profit for the Omaha, Nebraska-based insurance and investment conglomerate probably fell to $3.73 billion from $4.24 billion.

Net income probably rose to $5.59 billion from $5.16 billion, helped by a gain from the swap of Procter & Gamble Co stock for the Duracell battery business.

Buffett said insurance underwriting suffered from hailstorm claims. Railroads have been hurt by declining oil shipments.

Buffett also said the odds were "extremely high" that his Berkshire Hathaway Inc would buy back "a lot" of its stock if the price fell below 1.2 times book value, a level it recently approached.

Speaking at Berkshire's annual shareholder meeting in Omaha, Nebraska, Buffett also said he would consider raising the threshold "a little" if he found Berkshire with so much money that it "burns a hole in your pocket."

He said that could happen if Berkshire's cash hoard rose to $100 billion or $120 billion, a level it has never reached and perhaps double what it is now, following January's $32-billion purchase of industrial parts maker Precision Castparts Corp.

"The stock is worth significantly more than 1.2," times book value, he said.

Berkshire is expected to disclose its book value per share when it releases final first-quarter results on May 6. – Reuters