OMAHA, Neb.–(BUSINESS WIRE)–Berkshire Hathaway Inc. (BRK.A; BRK.B) –
Berkshire’s operating results for the first quarter of 2019 and 2018 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 quarter of 2019 and 2018 are summarized below. Earnings
are stated on an after-tax basis. (Dollar amounts are in millions,
except for per share amounts).
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First Quarter |
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2019 |
2018 |
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| Net earnings (loss) attributable to Berkshire shareholders | $ | 21,661 | $ | (1,138 | ) | |||||
| Net earnings (loss) includes: | ||||||||||
| Investment and derivative gains/losses – | ||||||||||
| Investments | 15,498 | (6,263 | ) | |||||||
| Derivatives | 608 | (163 | ) | |||||||
| 16,106 | (6,426 | ) | ||||||||
| Operating earnings | 5,555 | 5,288 | ||||||||
| Net earnings (loss) attributable to Berkshire shareholders | $ | 21,661 | $ | (1,138 | ) | |||||
| Net earnings (loss) per average equivalent Class A Share | $ | 13,209 | $ | (692 | ) | |||||
| Net earnings (loss) per average equivalent Class B Share | $ | 8.81 | $ | (0.46 | ) | |||||
| Average equivalent Class A shares outstanding | 1,639,821 | 1,644,958 | ||||||||
| Average equivalent Class B shares outstanding | 2,459,731,886 | 2,467,436,888 | ||||||||
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Beginning in 2018, due to a change in Generally Accepted |
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The amount of investment gains/losses in any given quarter |
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An analysis of Berkshire’s operating earnings follows (dollar |
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First Quarter |
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2019 |
2018 |
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| Insurance-underwriting | $ | 389 | $ | 407 | ||||||
| Insurance-investment income | 1,237 | 1,012 | ||||||||
| Railroad, utilities and energy | 1,858 | 1,730 | ||||||||
| Other businesses | 2,200 | 2,127 | ||||||||
| Other | (129 | ) | 12 | |||||||
| Operating earnings | $ | 5,555 | $ | 5,288 | ||||||
As of May 3, 2019, Kraft Heinz has not filed its 2018 Form 10-K with the
Securities and Exchange Commission. In addition, Kraft Heinz has not
made its financial statements for the first quarter of 2019 available to
Berkshire. Accordingly, Berkshire does not have the necessary financial
information to determine its share of the earnings of Kraft Heinz for
the first quarter of 2019. As a result, Berkshire’s first quarter 2019
other operating earnings excludes such amount. Berkshire will record its
share of Kraft Heinz’s earnings for the three months ended March 31,
2019 during the period that such information becomes available. Other
operating earnings in the first quarter of 2018 included $234 million
related to Berkshire’s investment in Kraft Heinz.
At March 31, 2019, insurance float (the net liabilities we assume under
insurance contracts) was approximately $124 billion, an increase of
approximately $1 billion since yearend 2018.
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,
as previously described, under applicable GAAP accounting requirements,
we are now 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.
Contacts
Marc D. Hamburg
402-346-1400
