Summary
Berkshire Hathaway Inc. reported solid financial results for the first six months of 2012, with net earnings attributable to Berkshire Hathaway shareholders reaching $6.35 billion, a significant increase from $4.93 billion in the same period of the prior year. This growth was driven by strong performance across its diverse operating businesses, particularly in manufacturing, service, and retailing, which saw a substantial revenue and earnings boost from the inclusion of Lubrizol. The railroad segment (BNSF) also demonstrated robust revenue and earnings growth. Insurance underwriting results improved year-over-year, largely due to a reduction in catastrophe losses compared to the prior year's significant events. Investment income remained strong, although slightly lower than the prior year's first half due to the redemption of preferred stock investments in Goldman Sachs and General Electric. Shareholders' equity increased to $177.4 billion as of June 30, 2012, reflecting strong retained earnings and positive other comprehensive income, primarily driven by unrealized appreciation in investment portfolios. The company maintained a strong liquidity position with substantial cash and investments. While the company faces ongoing risks related to market volatility, regulatory changes, and potential insurance catastrophe losses, its diversified business model, strong capital base, and disciplined management approach position it well for continued stability and growth.
Financial Highlights
29 data points| Revenue | $38.55B |
| Operating Expenses | $33.93B |
| Operating Income | $5.85B |
| Net Income | $3.11B |
| EPS (Basic) | $1882.00 |
| Shares Outstanding (Basic) | 1.65M |
Key Highlights
- 1Net earnings attributable to Berkshire Hathaway shareholders increased to $6.35 billion for the first six months of 2012, up from $4.93 billion in the prior year.
- 2Consolidated shareholders' equity grew to $177.4 billion as of June 30, 2012, up from $165.0 billion at the end of 2011.
- 3The manufacturing, service, and retailing segment showed significant growth, partly due to the inclusion of The Lubrizol Corporation.
- 4BNSF, the railroad subsidiary, reported higher revenues and earnings due to increased volumes and average revenues per unit.
- 5Insurance underwriting results improved, with a net underwriting gain of $673 million for the first six months of 2012, compared to a net underwriting loss of $828 million in the prior year, largely due to fewer catastrophe losses.
- 6The company maintained a strong liquidity position, with cash and cash equivalents of $40.7 billion at the end of the six-month period.
- 7Significant unrealized gains were recorded in the equity securities portfolio, contributing to a substantial increase in accumulated other comprehensive income.