But it also reported company morale has been bad after Abrams fired sales executives and antagonized retailers by trying to "strong-arm them into exclusive distribution deals."

Even so, it's extremely unusual for Buffett to drop his usual "hands-off" policy and fire the CEO of a subsidiary.

Dow Jones' Market Talk quotes Buffett watcher Jeff Matthews as saying: "It is completely out of character for him to replace managers on the basis of strategy and ideas about distribution channels. It must have been something else seriously going wrong at the business."

Keep up with Warren Buffett on CNBC.com and follow alexcrippen on Twitter .

Email comments to buffettwatch@cnbc.com

BRK.A News & Analysis

 Stocks End Lower Amid Fed's QE Comments; Cisco Soars 13% - 16 May 2013 EDT - CNBC.COM

 Why Moody's Won't Downgrade Berkshire Hathaway - 16 May 2013 EDT - CNBC.COM

 S&P Downgrades Buffett's Berkshire, Negative Outlook - 16 May 2013 EDT - CNBC.COM

 Futures Flat After Economic Data; Cisco Surges - 16 May 2013 EDT - CNBC.COM

 Early Movers: WMT, KSS, CSCO & More - 16 May 2013 EDT - CNBC.COM

 More BRK.A News