Berkshire Hathaway Inc. News Release
Berkshire Hathaway reported significant financial results for the third quarter and the first nine months of 2022. Key highlights include a net loss attributable to shareholders of $(2,688) million in Q3 2022, compared to a profit of $10,344 million in Q3 2021. For the first nine months, the loss was $(40,983) million versus a profit of $50,149 million in 2021. Operating earnings improved to $7,761 million in Q3 2022, up from $6,466 million in Q3 2021, reflecting a robust operational performance despite investment losses totaling $(10.1 billion) in Q3 and $(63.9 billion) year-to-date.
- Operating earnings of $7,761 million in Q3 2022, a 20% increase from $6,466 million in Q3 2021.
- Increased insurance float to approximately $150 billion, up $3 billion from year-end 2021.
- Share repurchases totaled approximately $1.05 billion in Q3, bringing the nine-month total to $5.25 billion.
- Net earnings attributable to shareholders showed a significant loss of $(2,688) million in Q3 2022, compared to a profit of $10,344 million in Q3 2021.
- Investment losses reached $(10.1 billion) in Q3 2022 and $(63.9 billion) in the first nine months of 2022.
- Results indicate potential volatility in financial performance due to heavy unrealized losses.
Earnings (losses) of
|
Third Quarter |
First Nine Months |
|||||||||||
|
2022 |
2021 |
2022 |
2021 |
|||||||||
|
|
|
|
|
|||||||||
Net earnings (losses) attributable to Berkshire shareholders |
$ |
(2,688 |
) |
$ |
10,344 |
$ |
(40,983 |
) |
$ |
50,149 |
|||
Net earnings (losses) includes: |
|||||||||||||
Investment and derivative gains/losses |
|
(10,449 |
) |
|
3,878 |
|
(65,067 |
) |
|
29,979 |
|||
Operating earnings |
|
7,761 |
|
|
6,466 |
|
24,084 |
|
|
20,170 |
|||
Net earnings (losses) attributable to Berkshire shareholders |
$ |
(2,688 |
) |
$ |
10,344 |
$ |
(40,983 |
) |
$ |
50,149 |
|||
Net earnings (losses) per average equivalent Class A Share |
$ |
(1,832 |
) |
$ |
6,882 |
$ |
(27,866 |
) |
$ |
33,025 |
|||
Net earnings (losses) per average equivalent Class |
$ |
(1.22 |
) |
$ |
4.59 |
$ |
(18.58 |
) |
$ |
22.02 |
|||
Average equivalent Class A shares outstanding. |
|
1,466,946 |
|
|
1,503,013 |
|
1,470,714 |
|
|
1,518,513 |
|||
Average equivalent Class B shares outstanding |
|
2,200,419,462 |
|
|
2,254,518,838 |
|
2,206,070,294 |
|
|
2,277,769,582 |
|||
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 2022 include losses 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).
|
Third Quarter |
|
First Nine Months |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
|
|
|
|||||||||||
Insurance-underwriting |
$ |
(962 |
) |
$ |
(784 |
) |
$ |
(334 |
) |
$ |
356 |
|
|||
Insurance-investment income |
|
1,408 |
|
|
1,161 |
|
|
4,484 |
|
|
3,588 |
|
|||
Railroad |
|
1,442 |
|
|
1,538 |
|
|
4,477 |
|
|
4,305 |
|
|||
Utilities and energy |
|
1,585 |
|
|
1,496 |
|
|
3,101 |
|
|
2,939 |
|
|||
Other controlled businesses |
|
3,247 |
|
|
2,706 |
|
|
9,521 |
|
|
8,329 |
|
|||
Non controlled businesses* |
|
362 |
|
|
310 |
|
|
874 |
|
|
665 |
|
|||
Other** |
|
679 |
|
|
39 |
|
|
1,961 |
|
|
(12 |
) |
|||
Operating earnings |
$ |
7,761 |
|
$ |
6,466 |
|
$ |
24,084 |
|
$ |
20,170 |
|
|||
* Includes certain businesses in which Berkshire has between a
** Includes foreign currency exchange gains 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
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.
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FAQ
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