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Berkshire Hathaway Inc. (BRK.A; BRK.B) –
Berkshire’s operating results for the first quarters of 2021 and 2020 are summarized in the following paragraphs. However, we urge investors and journalists to read our 10-Q, which was posted on www.berkshirehathaway.com. The limited information that follows in this press release is not sufficient to make an informed investment judgment..
The results of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters of 2021 and 2020 are summarized below. Winnings are shown on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).
|
First shift |
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|
2021 |
2020 |
||||||
|
Net income (loss) attributable to shareholders of Berkshire |
$ |
11 711 |
$ |
(49,746 |
) |
||
|
Net income (loss) includes: |
|||||||
|
Investment gains (losses) and derivatives |
4,693 |
(55,617 |
) |
||||
|
Operating profit |
7,018 |
5 871 |
|||||
|
Net income (loss) attributable to shareholders of Berkshire |
$ |
11 711 |
$ |
(49,746 |
) |
||
|
Average net earnings (loss) per equivalent Class A share |
$ |
7 638 |
$ |
(30 653 |
) |
||
|
Average net earnings (loss) per equivalent Class B share |
$ |
5.09 |
$ |
(20.44 |
) |
||
|
Average Equivalent Class A Shares Outstanding |
1,533,284 |
1,622,889 |
|||||
|
Average equivalent class B shares outstanding |
2,299,925,502 |
2 434 333 367 |
|||||
|
Generally accepted accounting principles (“GAAPâ€) require that we include changes in unrealized gains / losses from our equity investments as a component of investment gains / losses in our statements of operations. In the table above, the investment gains (losses) include gains of approximately $ 2.8 billion in the first quarter of 2021 and losses of approximately $ 54.5 billion in the first quarter of 2020 due to changes during the first quarters of 2021 and 2020 in the amount of gains that existed in our equity investments. Investment gains (losses) also include realized after-tax gains on the sale of investments of approximately $ 1,414 million and $ 965 million in the first quarters of 2021 and 2020, respectively. |
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|
The amount of investment gains (losses) in any given quarter is usually meaningless and provides net earnings per share figures that can be extremely misleading for investors with little or no knowledge of the rules. accountants. |
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|
An analysis of Berkshire’s operating profit follows (dollar amounts are in millions). |
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|
First shift |
|||||||
|
2021 |
2020 |
||||||
|
Insurance subscription |
$ |
764 |
$ |
363 |
|||
|
Insurance investment income |
1 208 |
1,386 |
|||||
|
Railways, utilities and energy |
1 954 |
1,751 |
|||||
|
Other companies |
2,619 |
2,038 |
|||||
|
Other |
473 |
333 |
|||||
|
Operating profit |
$ |
7,018 |
$ |
5 871 |
|||
Approximately $ 6.6 billion was used to purchase Class A and B common shares during the first quarter of 2021. As of March 31, 2021, 1,525,655 Class A equivalent shares were outstanding.
As of March 31, 2021, the insurance free float (the net liability that we assume under insurance contracts) was approximately $ 140 billion, an increase of approximately $ 2 billion since the end of year 2020.
Use of non-GAAP financial measures
This press release includes certain non-GAAP financial measures. Reconciliations of these measures with the most comparable GAAP figures in accordance with Regulation G are included herein.
Berkshire presents its results in a way it believes will be most meaningful and useful, as well as transparent, to the investing public and other users who use Berkshire’s financial information. This presentation includes the use of certain non-GAAP financial measures. In addition to GAAP presentations of net income, Berkshire presents operating income defined as net income excluding investments 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 business, the generation of investment gains or losses is independent of the process. insurance underwriting. In addition, as previously described, under applicable accounting requirements under GAAP, we are now required to include changes in unrealized gains / losses from our equity investments as a component of investment gains / losses. in our periodic income statements. In short, the investment gains / losses for a given period are not indicative of the quarterly performance of the company.
About Berkshire
Berkshire Hathaway and its subsidiaries are engaged in a variety of business activities including insurance and reinsurance, utilities and energy, freight rail, manufacturing, retail and services. The company’s common stock is listed on the New York Stock Exchange under the symbols BRK.A and BRK.B.
Caution
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 guarantees of future performance and actual results may differ materially from those anticipated.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210501005004/en/
Contacts
Marc D. Hamburg
402-346-1400
