Summary
Berkshire Hathaway's first quarter 2011 report shows a net earnings decline to $1.51 billion from $3.63 billion in the prior year's first quarter. This decrease was largely driven by significant catastrophe losses in the insurance and reinsurance segments, totaling approximately $1.1 billion after tax, impacting underwriting results. Despite the headline earnings drop, core operating businesses demonstrated resilience. GEICO saw premium growth and improved loss ratios, while BNSF reported strong revenue increases driven by higher volumes and surcharges. The company's financial position remains robust with consolidated shareholders' equity increasing to $160.1 billion. Berkshire continued to actively manage its investment portfolio, recognizing $506 million in other-than-temporary impairment losses on equity securities, primarily related to Kraft Foods and Wells Fargo, while also benefiting from the upcoming redemption of its Goldman Sachs preferred stock. The company also announced its intention to acquire The Lubrizol Corporation for approximately $9.0 billion, signaling continued strategic growth initiatives.
Financial Highlights
28 data points| Revenue | $33.72B |
| Operating Expenses | $31.49B |
| Operating Income | $2.54B |
| Net Income | $1.51B |
| EPS (Basic) | $917.00 |
| Shares Outstanding (Basic) | 1648.41B |
Key Highlights
- 1Net earnings attributable to Berkshire Hathaway shareholders decreased to $1.51 billion in Q1 2011 from $3.63 billion in Q1 2010, primarily due to significant catastrophe losses.
- 2Insurance underwriting segment experienced a net loss of $821 million, heavily impacted by $1.7 billion in estimated catastrophe losses from events in Japan, New Zealand, and Australia.
- 3GEICO demonstrated solid performance with a 6.4% increase in premiums earned and a reduced loss ratio of 72.2%.
- 4Burlington Northern Santa Fe (BNSF) reported a substantial 17% increase in revenues to $4.53 billion, driven by higher average revenues per unit and an 8% increase in handled units.
- 5Consolidated shareholders' equity grew to $160.1 billion as of March 31, 2011, indicating a strong capital base.
- 6Berkshire Hathaway announced plans to acquire The Lubrizol Corporation for approximately $9.0 billion, expected to close in Q3 2011.
- 7Other-than-temporary impairment losses on equity securities amounted to $506 million, with significant portions attributed to Kraft Foods and Wells Fargo.