Summary
Berkshire Hathaway Inc. (BRK-B) reported strong financial performance for the fiscal year ending December 31, 2016. The company experienced growth across its diverse business segments, including insurance, railroads, utilities and energy, manufacturing, service, retailing, and finance. Total revenues increased, driven by higher insurance premiums earned and robust sales from its manufacturing, service, and retailing operations. Net earnings attributable to Berkshire Hathaway shareholders remained substantial, reflecting both operational performance and significant investment gains. The company's insurance businesses, a core component of its operations, continued to demonstrate resilience, with underwriting gains and substantial investment income. GEICO, in particular, saw increased premiums written and earned. BNSF Railway navigated a challenging environment with lower volumes but maintained profitability. Berkshire Hathaway Energy reported increased earnings, benefiting from rate increases and lower operational costs. The company's extensive manufacturing, service, and retailing segments, bolstered by strategic acquisitions like Precision Castparts (PCC) and Duracell, also contributed positively to overall results. The report highlights Berkshire's consistent financial strength, substantial liquidity, and commitment to shareholder value.
Financial Highlights
30 data points| Revenue | $215.11B |
| Operating Expenses | $190.86B |
| Interest Expense | $3.74B |
| Net Income | $24.07B |
Key Highlights
- 1Total revenues for 2016 reached $223.6 billion, an increase from $210.9 billion in 2015, driven by growth across multiple business segments.
- 2Net earnings attributable to Berkshire Hathaway shareholders remained strong at $24.1 billion in 2016, consistent with the previous year.
- 3Insurance premiums earned increased to $45.9 billion, reflecting growth in both primary insurance and reinsurance operations.
- 4The acquisition of Precision Castparts Corp. (PCC) significantly boosted manufacturing segment revenues and earnings.
- 5Berkshire Hathaway Energy reported increased earnings, benefiting from regulatory approvals and operational efficiencies.
- 6The company maintained a strong liquidity position, with cash, cash equivalents, and U.S. Treasury Bills totaling $70.9 billion at year-end 2016.
- 7The company's stock repurchase program remained available, though no shares were repurchased in 2016, with a commitment to maintain at least $20 billion in cash and equivalents.