Berkshire Hathaway Inc. First Quarter 2024 Earnings Release
May 04 2024 - 8:00AM
Business Wire
(BRK.A; BRK.B) – Berkshire’s operating results for the first
quarters 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 first quarters 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).
First Quarter
2024
2023
Net earnings attributable to Berkshire
shareholders
$
12,702
$
35,504
Net earnings includes:
Investment gains (losses)
1,480
27,439
Operating earnings
11,222
8,065
Net earnings attributable to Berkshire
shareholders
$
12,702
$
35,504
Net earnings per average equivalent Class
A Share
$
8,825
$
24,377
Net earnings per average equivalent Class
B Share*
$
5.88
$
16.25
Average equivalent Class A shares
outstanding
1,439,370
1,456,438
Average equivalent Class B shares
outstanding
2,159,055,134
2,184,657,109
* Per share amounts are 1/1,500th of those
shown for Class A.
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) include losses of approximately $9.7 billion in the first
quarter of 2024 and gains of approximately $23.4 billion in the
first quarter of 2023 due to changes during the first quarters of
2024 and 2023 in the amount of unrealized gains that existed in our
equity security investment holdings. Investment gains (losses) also
include after-tax realized gains on sales of investments of $11.2
billion in the first quarter of 2024 and $1.7 billion in the first
quarter of 2023. In 2023, investment gains also include a net
remeasurement gain of approximately $2.4 billion related to
Berkshire’s acquisition of an additional 41.4% ownership 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).
First Quarter
2024
2023
Insurance-underwriting
$
2,598
$
911
Insurance-investment income
2,598
1,969
BNSF
1,143
1,247
Berkshire Hathaway Energy Company
717
416
Other controlled businesses
3,088
3,065
Non-controlled businesses*
405
568
Other
673
(111
)
Operating earnings
$
11,222
$
8,065
* Includes certain businesses in which
Berkshire had between a 20% and 50% ownership interest.
Approximately $2.6 billion was used to purchase shares of Class
A and Class B common stock during the first quarter of 2024. On
March 31, 2024, there were 1,437,251 Class A equivalent shares
outstanding. At March 31, 2024, insurance float (the net
liabilities we assume under insurance contracts) was approximately
$168 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 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, freight
rail transportation, utilities and energy, manufacturing services
and retailing. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240504932623/en/
Marc D. Hamburg 402-346-1400