Summary
Berkshire Hathaway Inc.'s 2013 10-K report showcases a robust and diversified conglomerate. The company demonstrated strong performance across its core insurance operations, with significant underwriting gains, bolstered by solid investment income. The railroad segment, BNSF, and the utilities and energy businesses, primarily MidAmerican, both reported substantial earnings and saw revenue growth, contributing significantly to the overall results. Manufacturing, service, and retailing segments collectively showed increased earnings, partly due to strategic acquisitions and operational improvements. The finance and financial products division also contributed positively, driven by growth in manufactured housing and finance. Berkshire Hathaway continued its focus on capital preservation and opportunistic investments, with substantial cash reserves maintained. The company also highlighted its commitment to share repurchases, although no shares were repurchased in 2013, the program remained in place to be utilized when valuations were deemed attractive.
Financial Highlights
30 data points| Revenue | $182.15B |
| Operating Expenses | $153.35B |
| Interest Expense | $2.80B |
| Net Income | $19.48B |
| Shares Outstanding (Basic) | 1.64M |
Key Highlights
- 1Underwriting gains across insurance operations exceeded $1.9 billion, demonstrating profitability despite some catastrophe losses.
- 2BNSF railroad operations reported pre-tax earnings of $5.9 billion on revenues of $22 billion, reflecting strong performance in key freight categories.
- 3Utilities and energy businesses, led by MidAmerican, generated $1.47 billion in net earnings attributable to Berkshire Hathaway, supported by regulated operations and renewable energy investments.
- 4Manufacturing, service, and retailing segments saw a 14.4% increase in earnings over 2012, partly due to acquisitions like Lubrizol and operational improvements.
- 5The company maintained a strong financial position with consolidated shareholders' equity reaching $221.9 billion, and significant cash reserves of $42.6 billion in the insurance and other businesses.
- 6Investment and derivative gains contributed $4.3 billion after-tax to net earnings, though management cautioned against over-reliance on these volatile components for performance evaluation.
- 7Berkshire Hathaway continued its large-scale acquisition strategy, notably investing $12.25 billion in H.J. Heinz Holding Corporation.