Berkshire Hathaway Inc. News Release
August 03 2024 - 8:00AM
Business Wire
(BRK.A; BRK.B) –
Berkshire’s operating results for the second quarter and first
six months of 2024 and 2023 are summarized in the following
paragraphs. However, we urge investors and reporters to read our
10-Q, which has been posted at www.berkshirehathaway.com. The
limited information that follows in this press release is not
adequate for making an informed investment judgment.
Earnings of Berkshire Hathaway Inc. and its consolidated
subsidiaries for the second quarter and first six months of 2024
and 2023 are summarized below. Earnings are stated on an after-tax
basis. (Dollar amounts are in millions, except for per share
amounts).
Second Quarter
First Six Months
2024
2023
2024
2023
Net earnings attributable to Berkshire
shareholders
$
30,348
$
35,912
$
43,050
$
71,416
Net earnings includes:
Investment gains (losses)
18,750
25,869
20,230
53,308
Operating earnings
11,598
10,043
22,820
18,108
Net earnings attributable to Berkshire
shareholders
$
30,348
$
35,912
$
43,050
$
71,416
Net earnings per average equivalent Class
A Share
$
21,122
$
24,775
$
29,936
$
49,152
Net earnings per average equivalent Class
B Share
$
14.08
$
16.52
$
19.96
$
32.77
Average equivalent Class A shares
outstanding
1,436,790
1,449,542
1,438,080
1,452,971
Average equivalent Class B shares
outstanding
2,155,185,283
2,174,313,670
2,157,120,209
2,179,456,816
Note: Per share amounts for the Class B shares are 1/1,500th of
those shown for the Class A shares.
Generally Accepted Accounting Principles (“GAAP”) require that
we include the changes in unrealized gains (losses) of our equity
security investments as a component of investment gains (losses) in
our earnings statements. In the table above, investment gains
(losses) in 2024 include after-tax realized gains on sales of
investments of $47.0 billion in the second quarter and $58.2
billion in the first six months and in 2023 include after-tax
realized gains on sales of investments of $1.6 billion in the
second quarter and $3.3 billion in the first six months. Investment
gains (losses) in 2024 also include losses of $28.2 billion in the
second quarter and $37.9 billion in the first six months and in
2023 include gains of $24.2 billion in the second quarter and $47.6
billion in the first six months due to changes during the second
quarter and the first six months in the unrealized gains that
existed in our equity security investment holdings. In the first
six months of 2023 investment gains also include a net
remeasurement gain of approximately $2.4 billion related to
Berkshire’s acquisition of an additional 41.4% interest in Pilot
Travel Centers.
The amount of investment gains (losses) in any given quarter
is usually meaningless and delivers figures for net earnings per
share that can be extremely misleading to investors who have little
or no knowledge of accounting rules.
An analysis of Berkshire’s operating earnings follows (dollar
amounts are in millions).
Second Quarter
First Six Months
2024
2023
2024
2023
Insurance-underwriting
$
2,263
$
1,247
$
4,861
$
2,158
Insurance-investment income
3,320
2,369
5,918
4,338
BNSF
1,227
1,264
2,370
2,511
Berkshire Hathaway Energy Company
655
785
1,372
1,201
Other businesses
3,380
3,503
6,468
6,568
Non-controlled businesses *
220
535
625
1,103
Other **
533
340
1,206
229
Operating earnings
$
11,598
$
10,043
$
22,820
$
18,108
*
Includes certain businesses in which
Berkshire had between a 20% and 50% ownership interest.
**
Includes foreign currency exchange gains
related to non-U.S. Dollar denominated debt in 2024 of $446 million
in the second quarter and $1.04 billion in the first six months and
in 2023 $465 million in the second quarter and $448 million in the
first six months.
Approximately $345 million was used to repurchase Berkshire
shares during the second quarter of 2024, bringing the six-month
total to $2.9 billion. On June 30, 2024, there were 1,436,696 Class
A equivalent shares outstanding. At June 30, 2024, insurance float
(the net liabilities we assume under insurance contracts) was
approximately $169 billion.
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures.
The reconciliations of such measures to the most comparable GAAP
figures in accordance with Regulation G are included herein.
Berkshire presents its results in the way it believes will be
most meaningful and useful, as well as most transparent, to the
investing public and others who use Berkshire’s financial
information. That presentation includes the use of certain non-GAAP
financial measures. In addition to the GAAP presentations of net
earnings, Berkshire shows operating earnings defined as net
earnings exclusive of investment and derivative gains (losses) and
impairments of goodwill and intangible assets.
Although the investment of insurance and reinsurance premiums to
generate investment income and investment gains or losses is an
integral part of Berkshire’s operations, the generation of
investment gains or losses is independent of the insurance
underwriting process. Moreover, as previously described, under
applicable GAAP accounting requirements, we are required to include
the changes in unrealized gains (losses) of our equity security
investments as a component of investment gains (losses) in our
periodic earnings statements. In sum, investment gains (losses) for
any particular period are not indicative of quarterly business
performance.
About Berkshire
Berkshire Hathaway and its subsidiaries engage in diverse
business activities including insurance and reinsurance, utilities
and energy, freight rail transportation, manufacturing, retailing
and services. Common stock of the company is listed on the New York
Stock Exchange, trading symbols BRK.A and BRK.B.
Cautionary Statement
Certain statements contained in this press release are “forward
looking” statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guaranties
of future performance and actual results may differ materially from
those forecasted.
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Marc D. Hamburg 402-346-1400