Berkshire Hathaway Inc. News Release

Rhea-AI Summary

Berkshire Hathaway reported significant losses for the second quarter and first half of 2022, posting net earnings attributable to shareholders of $(43,755) million, down from $28,094 million in 2021. The company's operating earnings, however, increased to $9,283 million from $6,686 million in the second quarter of 2021. Investment and derivative losses amounted to $(53,038) million, overshadowing operational gains. A total of $1 billion was used for share repurchases in Q2, resulting in a six-month total of $4.2 billion. Insurance float remained stable at approximately $147 billion.

Positive

• Operating earnings rose to $9,283 million in Q2 2022, up from $6,686 million in Q2 2021.
• $1 billion utilized for share repurchases in Q2 2022, enhancing shareholder value.

Negative

• Net earnings attributable to shareholders fell to $(43,755) million in Q2 2022, compared to $28,094 million in Q2 2021.
• Investment and derivative losses reached $(53,038) million in Q2 2022, impacting overall financial performance.

OMAHA, Neb.--(BUSINESS WIRE)-- (BRK.A; BRK.B) – Berkshire’s operating results for the second quarter and first six months of 2022 and 2021 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 2022 and 2021 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
		2022				2021				2022				2021
Net earnings (loss) attributable to Berkshire shareholders	$	(43,755	)		$	28,094			$	(38,295	)		$	39,805
Net earnings (loss) includes:
Investment and derivative gains (losses)		(53,038	)			21,408				(54,618	)			26,101
Operating earnings		9,283				6,686				16,323				13,704
Net earnings (loss) attributable to Berkshire shareholders	$	(43,755	)		$	28,094			$	(38,295	)		$	39,805
Net earnings (loss) per average equivalent Class A Share	$	(29,754	)		$	18,488			$	(26,005	)		$	26,078
Net earnings (loss) per average equivalent Class B Share	$	(19.84	)		$	12.33			$	(17.34	)		$	17.39
Average equivalent Class A shares outstanding		1,470,577				1,519,576				1,472,628				1,526,392
Average equivalent Class B shares outstanding		2,205,865,262				2,279,363,382				2,208,942,539				2,289,587,640

Note: Per share amounts for the Class B shares are 1/1,500^th 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 2022 include losses of $53.0 billion in the second quarter and $53.8 billion in the first six months and in 2021 include gains of $21.0 billion in the second quarter and $23.8 billion in the first six months due to changes during the second quarter and the first six months in the unrealized gains that existed in our equity security investment holdings. Investment gains (losses) in 2022 also include after-tax realized gains on sales of investments of $44 million in the second quarter and after-tax realized losses of $568 million in the first six months and in 2021 include after-tax realized gains on sales of investments of $183 million in the second quarter and $1.6 billion in the first six months.

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).

		Second Quarter								First Six Months
			2022				2021				2022				2021
Insurance-underwriting		$	581			$	376			$	628			$	1,140
Insurance-investment income			1,906				1,219				3,076				2,427
Railroad			1,664				1,516				3,035				2,767
Utilities and energy			766				740				1,516				1,443
Other businesses			3,249				3,004				6,274				5,623
Other *			1,117				(169	)			1,794				304
Operating earnings		$	9,283			$	6,686			$	16,323			$	13,704

* Includes foreign currency exchange gains related to non-U.S. Dollar denominated debt in 2022 of approximately $1.1 billion in the second quarter and approximately $1.6 billion in the first six months and in 2021 includes foreign currency exchange losses of approximately $45 million in the second quarter and gains of approximately $480 million in the first six months.

Approximately $1.0 billion was used to repurchase Berkshire shares during the second quarter of 2022, bringing the six-month total to $4.2 billion. At June 30, 2022, insurance float (the net liabilities we assume under insurance contracts) was approximately $147 billion, relatively unchanged from yearend 2021.

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/20220806005001/en/

Marc D. Hamburg

402-346-1400

Source: Berkshire Hathaway Inc.

FAQ

What are Berkshire Hathaway's Q2 2022 earnings results?

Berkshire Hathaway reported net earnings of $(43,755) million for Q2 2022, a decline from $28,094 million in Q2 2021.

How did Berkshire Hathaway's operating earnings perform in the first half of 2022?

Operating earnings for the first half of 2022 increased to $16,323 million from $13,704 million in the same period in 2021.

What was the amount used for share repurchases by Berkshire Hathaway in Q2 2022?

Berkshire Hathaway repurchased $1 billion of its shares in Q2 2022.

What was the insurance float for Berkshire Hathaway as of June 30, 2022?

The insurance float remained stable at approximately $147 billion as of June 30, 2022.

What were the investment gains and losses for Berkshire Hathaway in Q2 2022?

Berkshire Hathaway incurred investment and derivative losses of $(53,038) million in Q2 2022.