Berkshire Hathaway Inc. News Release

Rhea-AI Summary

Berkshire Hathaway Inc. (BRK.A; BRK.B) has released its financial results for the second quarter and first six months of 2024. The company reported net earnings of $30,348 million for Q2 2024, compared to $35,912 million in Q2 2023. Operating earnings increased to $11,598 million in Q2 2024 from $10,043 million in Q2 2023.

For the first six months of 2024, net earnings were $43,050 million, down from $71,416 million in the same period of 2023. The company's insurance-underwriting and insurance-investment income showed significant improvements. Berkshire repurchased approximately $345 million of its shares during Q2 2024, bringing the six-month total to $2.9 billion. As of June 30, 2024, Berkshire's insurance float was approximately $169 billion.

Positive

• Operating earnings increased to $11,598 million in Q2 2024 from $10,043 million in Q2 2023
• Insurance-underwriting earnings more than doubled to $2,263 million in Q2 2024 from $1,247 million in Q2 2023
• Insurance-investment income rose to $3,320 million in Q2 2024 from $2,369 million in Q2 2023
• Insurance float increased to approximately $169 billion as of June 30, 2024

Negative

• Net earnings decreased to $30,348 million in Q2 2024 from $35,912 million in Q2 2023
• Net earnings for the first six months of 2024 dropped to $43,050 million from $71,416 million in the same period of 2023
• BNSF earnings slightly decreased to $1,227 million in Q2 2024 from $1,264 million in Q2 2023
• Berkshire Hathaway Energy Company earnings declined to $655 million in Q2 2024 from $785 million in Q2 2023

Insights

Financial Analyst

Berkshire Hathaway's Q2 2024 results show a mixed performance. While net earnings decreased to $30.35 billion from $35.91 billion in Q2 2023, operating earnings increased to $11.60 billion from $10.04 billion. The insurance-underwriting segment saw significant improvement, with earnings nearly doubling to $2.26 billion. However, BNSF and BH Energy showed slight declines. The share repurchase program continued, with $345 million spent in Q2, totaling $2.9 billion for H1 2024. The company's insurance float grew to $169 billion, indicating strong underwriting discipline and potential for future investment income.

Investment Strategist

Berkshire's Q2 results highlight the company's resilience and diversification. Despite a 15.5% drop in net earnings, primarily due to unrealized investment losses, the core operating earnings grew by 15.5%. This underscores the strength of Berkshire's operating businesses. The insurance segment's performance is particularly noteworthy, with both underwriting and investment income showing substantial growth. The continued share repurchases, albeit at a slower pace than H1, signal management's confidence in the company's intrinsic value. Investors should focus on the operating earnings as a more reliable indicator of Berkshire's performance, given the volatility in investment gains/losses due to accounting rules.

Market Research Analyst

Berkshire's Q2 results reveal interesting market trends. The insurance sector's strong performance suggests a favorable pricing environment and potentially lower claim frequencies. The slight decline in BNSF earnings might indicate challenges in the transportation sector, possibly due to economic headwinds. The growth in insurance float to $169 billion provides Berkshire with a significant low-cost funding source for investments, a key competitive advantage. The reduced pace of share repurchases in Q2 compared to H1 could suggest that management finds fewer attractive opportunities at current market valuations. This aligns with Warren Buffett's value investing philosophy and could indicate a cautious outlook on current market conditions.

OMAHA, Neb.--(BUSINESS WIRE)-- (BRK.A; BRK.B) –

Berkshire’s operating results for the second quarter and first six months of 2024 and 2023 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 2024 and 2023 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
	2024			2023			2024			2023
Net earnings attributable to Berkshire shareholders	$	30,348		$	35,912		$	43,050		$	71,416
Net earnings includes:
Investment gains (losses)		18,750			25,869			20,230			53,308
Operating earnings		11,598			10,043			22,820			18,108
Net earnings attributable to Berkshire shareholders	$	30,348		$	35,912		$	43,050		$	71,416
Net earnings per average equivalent Class A Share	$	21,122		$	24,775		$	29,936		$	49,152
Net earnings per average equivalent Class B Share	$	14.08		$	16.52		$	19.96		$	32.77
Average equivalent Class A shares outstanding		1,436,790			1,449,542			1,438,080			1,452,971
Average equivalent Class B shares outstanding		2,155,185,283			2,174,313,670			2,157,120,209			2,179,456,816

Note: Per share amounts for the Class B shares are 1/1,500^th of those shown for the Class A shares.

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 2024 include after-tax realized gains on sales of investments of $47.0 billion in the second quarter and $58.2 billion in the first six months and in 2023 include after-tax realized gains on sales of investments of $1.6 billion in the second quarter and $3.3 billion in the first six months. Investment gains (losses) in 2024 also include losses of $28.2 billion in the second quarter and $37.9 billion in the first six months and in 2023 include gains of $24.2 billion in the second quarter and $47.6 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. In the first six months of 2023 investment gains also include a net remeasurement gain of approximately $2.4 billion related to Berkshire’s acquisition of an additional 41.4% interest in Pilot Travel Centers.

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
		2024			2023			2024			2023
	Insurance-underwriting	$	2,263		$	1,247		$	4,861		$	2,158
	Insurance-investment income		3,320			2,369			5,918			4,338
	BNSF		1,227			1,264			2,370			2,511
	Berkshire Hathaway Energy Company		655			785			1,372			1,201
	Other businesses		3,380			3,503			6,468			6,568
	Non-controlled businesses *		220			535			625			1,103
	Other **		533			340			1,206			229
	Operating earnings	$	11,598		$	10,043		$	22,820		$	18,108
*	Includes certain businesses in which Berkshire had between a 20% and 50% ownership interest.
**	Includes foreign currency exchange gains related to non-U.S. Dollar denominated debt in 2024 of $446 million in the second quarter and $1.04 billion in the first six months and in 2023 $465 million in the second quarter and $448 million in the first six months.

Approximately $345 million was used to repurchase Berkshire shares during the second quarter of 2024, bringing the six-month total to $2.9 billion. On June 30, 2024, there were 1,436,696 Class A equivalent shares outstanding. At June 30, 2024, insurance float (the net liabilities we assume under insurance contracts) was approximately $169 billion.

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/20240803795024/en/

Marc D. Hamburg

402-346-1400

Source: Berkshire Hathaway Inc.

FAQ

What were Berkshire Hathaway's (BRK) net earnings for Q2 2024?

Berkshire Hathaway's net earnings for Q2 2024 were $30,348 million.

How much did Berkshire Hathaway (BRK) spend on share repurchases in Q2 2024?

Berkshire Hathaway spent approximately $345 million on share repurchases during Q2 2024.

What was Berkshire Hathaway's (BRK) insurance float as of June 30, 2024?

Berkshire Hathaway's insurance float was approximately $169 billion as of June 30, 2024.

How did Berkshire Hathaway's (BRK) operating earnings change in Q2 2024 compared to Q2 2023?

Berkshire Hathaway's operating earnings increased to $11,598 million in Q2 2024 from $10,043 million in Q2 2023.