Summary
Berkshire Hathaway Inc.'s (BRK-B) third quarter and nine-month report for 2009 shows a significant increase in net earnings attributable to Berkshire Hathaway shareholders, rising from $1.06 billion in Q3 2008 to $3.24 billion in Q3 2009, and from $4.88 billion for the first nine months of 2008 to $5.00 billion for the same period in 2009. This surge is largely driven by a substantial positive swing in investment and derivative gains/losses, which shifted from a net loss of $1.01 billion in Q3 2008 to a gain of $1.18 billion in Q3 2009, and from a net loss of $1.39 billion in the first nine months of 2008 to a net gain of $541 million in the same period of 2009. The company's balance sheet remains robust, with shareholders' equity increasing to $130.7 billion. The filing also highlights a pending agreement to acquire the remaining stake in BNSF Railway, a significant strategic move. Operationally, Berkshire's insurance and utilities segments continued to demonstrate resilience despite ongoing global economic challenges. GEICO experienced premium growth and strong underwriting results. However, several manufacturing, service, and retailing businesses saw significant declines in revenue and earnings due to reduced consumer spending. The finance and financial products segment also faced headwinds. The company's substantial cash and investment holdings provide a strong foundation to navigate the uncertain economic environment and pursue strategic opportunities.
Financial Highlights
24 data points| Revenue | $29.90B |
| Operating Expenses | $25.07B |
| Net Income | $3.24B |
| EPS (Basic) | $2087.00 |
| Shares Outstanding (Basic) | 1.55M |
Key Highlights
- 1Net earnings attributable to Berkshire Hathaway shareholders surged in Q3 2009 to $3.24 billion, a significant increase from $1.06 billion in Q3 2008, largely due to positive swings in investment and derivative results.
- 2The company announced a definitive agreement to acquire the remaining 77.4% of BNSF Railway for approximately $26.4 billion, signaling a major strategic investment.
- 3Shareholders' equity increased to $130.7 billion as of September 30, 2009, up from $113.7 billion at the end of 2008, reflecting strong capital accumulation.
- 4The insurance segment, particularly GEICO, demonstrated strong performance with increased premiums and underwriting gains, showcasing resilience in a challenging economic climate.
- 5Manufacturing, service, and retailing businesses experienced significant revenue and earnings declines due to the ongoing global recession and reduced consumer spending.
- 6Berkshire's investment portfolio saw substantial unrealized gains, particularly in equity securities, contributing to the overall improvement in net earnings.
- 7The company holds substantial cash and investment reserves, totaling over $143 billion in its insurance and other businesses, providing ample liquidity and capacity for future investments.