Berkshire Suffers $2.8 Billion Hit on Kraft's Subpoena News

(Bloomberg) -- Late-breaking news hasn’t been kind to Warren Buffett’s Berkshire Hathaway Inc. this year.

Kraft Heinz Co. announced Thursday that profit missed estimates and it received a subpoena from the Securities and Exchange Commission tied to accounting policies and controls, sending shares plunging 18 percent in after-market hours. Berkshire’s investment declined from a valuation of about $15.7 billion to $12.9 billion as the stock plunged to $39.66 at 6:15 p.m. in New York. Kraft Heinz also said it would slash its quarterly dividend to 40 cents a share.

Buffett has been crucial to Kraft Heinz’s recent history, teaming up with 3G Capital in 2015 to form the food company through a merger. Thursday’s announcement marks the second time this year that a Berkshire holding has disclosed unfavorable news after the markets closed, hurting its stock. Apple Inc. trimmed its revenue outlook in January, which pummeled shareholders. That stock has since recovered.

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