Berkshire Hathaway Inc. press release

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OMAHA, Neb., November 6, 2021– (BUSINESS WIRE) – Berkshire Hathaway Inc. (BRK.A; BRK.B)

Berkshire’s operating results for the third quarter and first nine months of 2021 and 2020 are summarized in the following paragraphs. However, we invite investors and journalists to read our 10-Q, which was posted on www.berkshirehathaway.com. The limited information that follows in this press release is not sufficient to make an informed investment judgment..

The earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the third quarter and first nine months of 2021 and 2020 are summarized below. Income is shown after tax. (Dollar amounts are in millions, except per share amounts).

Third quarter

First nine months

2021

2020

2021

2020

Net income attributable to shareholders of Berkshire

$

10 344

$

30 137

$

50 149

$

6 686

The net profit includes:

Gains / losses on investments and derivatives –

Investments(1)

3 823

24,771

29 363

1,271

Derivatives

55

(34

)

616

(506

)

3,878

24,737

29,979

765

Impairment of intangible assets(2)

(78

)

(10 980

)

Operating profit

6 466

5,478

20 170

16,901

Net income attributable to shareholders of Berkshire

$

10 344

$

30 137

$

50 149

$

6 686

Average net earnings per equivalent Class A share

$

6 882

$

18,994

$

33,025

$

4 160

Average net earnings per equivalent Class B share

$

4.59

$

12.66

$

22.02

$

2.77

Average of class A equivalent shares outstanding

1,503,013

1,586,698

1,518,513

1 607 041

Average of equivalent class B shares outstanding

2 254 518 838

2,380,046,304

2,277,769,582

2 410 561 550

Note: The amounts per share for Class B shares are 1/1,500e those indicated for class A.

(1) Generally Accepted Accounting Principles (“GAAP”) require that we include changes in unrealized gains / losses from our equity investments as a component of investment gains / losses in our statements of earnings. In the table above, investment gains / losses in 2021 include after-tax gains of $ 3.1 billion in the third quarter and $ 26.9 billion in the first nine months and in 2020 include 22, $ 4 billion in the third quarter and $ 2.3 billion in the first nine months due to changes during the third trimester and the first nine months of unrealized gains that existed in our equity investments. Investment gains / losses in 2021 also include after tax executed investment sales gains of $ 757 million in the third quarter and $ 2.4 billion in the first nine months and in 2020 include $ 3.1 billion in the third quarter and $ 552 million during of the first nine months.

The amount of investment gains / losses in any given quarter is usually meaningless and provides net earnings per share figures which can be extremely misleading for investors who have little or no knowledge of accounting rules. .

(2) Impairments of intangible assets in the first nine months of 2020 include charges of $ 9.8 billion recorded in the second quarter attributable to impairments of goodwill and certain identifiable intangible assets that were recorded in connection with the acquisition by Berkshire of Precision Castparts Corp. in 2016.

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

Third quarter

First nine months

2021

2020

2021

2020

Underwriting insurance

$

(784

)

$

(213

)

$

356

$

956

Investment income insurance

1,161

1,015

3,588

3,769

Railways, utilities and energy

3 034

2,742

7,244

6 257

Other companies

2 706

2 346

8,329

5 833

Other

349

(412

)

653

86

Operating profit

$

6 466

$

5,478

$

20 170

$

16,901

About $ 7.6 billion was used to buy back Berkshire shares during the third quarter, bringing the nine-month total to around $ 20.2 billion. As of September 30, 2021, there were 1,493,097 equivalent Class A shares outstanding. As of September 30, 2021, the insurance float (the net liability that we assume under insurance contracts) was approximately $ 145 billion, an increase of $ 7 billion since year-end 2020.

Use of non-GAAP financial measures

This press release includes certain non-GAAP financial measures. Reconciliations of these measures with the most comparable GAAP figures in accordance with Regulation G are included here.

Berkshire presents its results in a manner that it considers most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire’s financial information. This presentation includes the use of certain non-GAAP financial measures. In addition to GAAP presentations of net income, Berkshire presents operating income defined as net income excluding investments 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 process. insurance underwriting. In addition, as described above, under applicable GAAP accounting requirements, we are required to include changes in unrealized gains / losses on our equity investments as a component of investment gains / losses in our investments. periodic income statements. In summary, investment gains / losses for any given period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries are engaged in a variety of business activities, including insurance and reinsurance, utilities and energy, freight rail, manufacturing, retail and services. The company’s common stock is listed on the New York Stock Exchange under the ticker symbols BRK.A and BRK.B.

Caution

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 guarantees of future performance and actual results may differ materially from those expected.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20211106005121/en/

Contacts

Marc D. Hamburg
402-346-1400


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