Summary
Berkshire Hathaway Inc.'s first quarter 2010 results show a significant turnaround from the prior year, driven largely by the full consolidation of Burlington Northern Santa Fe (BNSF) and a substantial increase in investment gains. Net earnings attributable to Berkshire Hathaway shareholders swung to $3.63 billion from a loss of $1.53 billion in the same period of 2009. This improvement was boosted by a $1.3 billion investment gain, which included a one-time $979 million gain from the BNSF acquisition. The acquisition of the remaining stake in BNSF in February 2010 significantly expanded the 'Railroad, Utilities and Energy' segment, leading to a substantial increase in its assets and liabilities. While insurance underwriting remained strong with a net underwriting gain of $226 million, investment income saw a slight decrease. The company's financial position remains robust, with consolidated shareholders' equity growing to $147.2 billion.
Financial Highlights
26 data points| Revenue | $32.04B |
| Operating Expenses | $26.94B |
| Operating Income | $3.46B |
| Net Income | $3.63B |
| EPS (Basic) | $2272.00 |
| Shares Outstanding (Basic) | 1.60M |
Key Highlights
- 1Turnaround to profitability: Net earnings attributable to Berkshire Hathaway shareholders were $3.63 billion in Q1 2010, a significant improvement from a net loss of $1.53 billion in Q1 2009.
- 2BNSF Acquisition Impact: The full consolidation of Burlington Northern Santa Fe (BNSF) after its acquisition in February 2010 significantly boosted the 'Railroad, Utilities and Energy' segment, with substantial increases in property, plant, and equipment, and goodwill.
- 3Strong Investment Gains: Investment gains totaled $1.3 billion in Q1 2010, a significant recovery from a loss of $370 million in Q1 2009, boosted by a $979 million one-time gain related to the BNSF acquisition.
- 4Robust Insurance Underwriting: The insurance businesses collectively reported a net underwriting gain of $226 million, demonstrating continued strength in this core segment, with GEICO showing healthy premium growth.
- 5Increased Debt Levels: Total borrowings increased significantly, largely due to debt issued to finance the BNSF acquisition, reaching $204.4 billion in total liabilities.
- 6Growth in Shareholders' Equity: Consolidated shareholders' equity increased by $16.1 billion to $147.2 billion, reflecting strong earnings and the issuance of Berkshire stock for the BNSF acquisition.