Berkshire Hathaway Inc. News Release
Earnings (losses) of Berkshire Hathaway Inc. and its consolidated subsidiaries for the fourth quarter and full year of 2023 and 2022 are summarized below. Earnings (losses) are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).
|
Fourth Quarter |
|
Full Year |
||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||
|
|
|
|
|
|||||||||
Net earnings (loss) attributable to Berkshire shareholders |
$ |
37,574 |
$ |
18,080 |
$ |
96,223 |
$ |
(22,759 |
) |
||||
Net earnings (loss) includes: |
|
|
|
|
|||||||||
Investment and derivative gains (losses) |
|
29,093 |
|
11,455 |
|
58,873 |
|
(53,612 |
) |
||||
Operating earnings |
|
8,481 |
|
6,625 |
|
37,350 |
|
30,853 |
|
||||
Net earnings (loss) attributable to Berkshire shareholders |
$ |
37,574 |
$ |
18,080 |
$ |
96,223 |
$ |
(22,759 |
) |
||||
Net earnings (loss) per average equivalent Class A Share |
$ |
26,043 |
$ |
12,355 |
$ |
66,412 |
$ |
(15,494 |
) |
||||
Net earnings (loss) per average equivalent Class B Share |
$ |
17.36 |
$ |
8.24 |
$ |
44.27 |
$ |
(10.33 |
) |
||||
Average equivalent Class A shares outstanding |
|
1,442,785 |
|
1,463,422 |
|
1,448,880 |
|
1,468,876 |
|
||||
Average equivalent Class B shares outstanding |
|
2,164,177,636 |
|
2,195,133,576 |
|
2,173,319,709 |
|
2,203,313,642 |
|
Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the 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) in 2023 include gains of
The amount of investment gains/losses in any given quarter is usually meaningless and delivers figures for net earnings (losses) 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).
|
Fourth Quarter |
|
Full Year |
|||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
|
|
|
|
|
||||||||||||
Insurance-underwriting |
$ |
848 |
|
$ |
160 |
|
$ |
5,428 |
|
$ |
(30 |
) |
||||
Insurance-investment income |
|
2,759 |
|
|
2,000 |
|
|
9,567 |
|
|
6,484 |
|
||||
Railroad |
|
1,355 |
|
|
1,469 |
|
|
5,087 |
|
|
5,946 |
|
||||
Utilities and energy |
|
632 |
|
|
739 |
|
|
2,331 |
|
|
3,904 |
|
||||
Other businesses |
|
3,691 |
|
|
3,709 |
|
|
15,112 |
|
|
14,040 |
|
||||
Other* |
|
(804 |
) |
|
(1,452 |
) |
|
(175 |
) |
|
509 |
|
||||
Operating earnings |
$ |
8,481 |
|
$ |
6,625 |
|
$ |
37,350 |
|
$ |
30,853 |
|
* |
Includes foreign currency exchange losses related to non- |
Approximately
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240224643700/en/
Marc D.
402-346-1400
Source: Berkshire Hathaway Inc.