Berkshire Hathaway Inc. News Release

OMAHA, Neb.--()--Berkshire Hathaway Inc. (BRK.A; BRK.B)–

Berkshire’s operating results for the second quarter and first six months of 2014 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 2014 and 2013 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

2014

 

2013

2014

 

2013

 
Operating earnings $ 4,331   $ 3,919   $ 7,864   $ 7,701  
Investment and derivative gains/losses –
Investments 1,963 322 2,982 648
Derivatives   101     300     254     1,084  
  2,064     622     3,236     1,732  
Net earnings attributable to Berkshire shareholders $ 6,395   $ 4,541   $ 11,100   $ 9,433  
 
Operating earnings per Class A equivalent share $ 2,634 $ 2,384 $ 4,783 $ 4,686
Investment and derivative gains/losses per Class A equivalent share   1,255     379     1,968     1,054  
Net earnings per Class A equivalent share attributable to Berkshire shareholders

$

3,889

 

$

2,763

 

$

6,751

 

$

5,740

 
 
Average Class A equivalent shares outstanding 1,644,370 1,643,599 1,644,215 1,643,391
 

Note:  Per share amounts for the Class B shares are 1/1,500th those shown for the Class A.

 

An analysis of Berkshire’s operating earnings follows (dollar amounts are in millions).

 

Second Quarter

First Six Months

2014

2013

2014

2013

 
Insurance-underwriting $ 411 $ 530 $ 872 $ 1,431
Insurance-investment income 1,131 1,144 1,851 1,943
Non-insurance businesses 2,835 2,372 5,182 4,617
Other   (46 )   (127 )   (41 )   (290 )
Operating earnings $ 4,331   $ 3,919   $ 7,864   $ 7,701  
 

In the table at the top of the page (which, as noted, reports after-tax results), we give investment and derivative gains (losses) lines of their own because the amounts of these in any given quarter or year is often meaningless.

Since the beginning of the year, Berkshire’s shareholders’ equity has increased $12.1 billion and our book value per Class A equivalent share has increased by 5.6% to $142,483. Insurance float (the net liabilities we assume under insurance contracts) at June 30, 2014 was $78.5 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.

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, under applicable GAAP accounting requirements, losses can be created as the result of other-than-temporary declines in value without actual realization or when certain types of investments are marked-to-market through earnings. In sum, investment and derivative 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 property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, 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.

Contacts

Berkshire Hathaway Inc.
Marc D. Hamburg, 402-346-1400

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Contacts

Berkshire Hathaway Inc.
Marc D. Hamburg, 402-346-1400