Summary
Berkshire Hathaway Inc. reported a strong second quarter and first six months of 2013, demonstrating robust growth across its diverse business segments. Net earnings attributable to Berkshire Hathaway shareholders reached $4.54 billion for the quarter and $9.43 billion for the six-month period, a significant increase from the prior year, driven by improved operating results and substantial investment gains. The company's insurance group continued to perform well, with solid underwriting gains and increased investment income. Key to the company's performance was a notable increase in investment and derivative gains, largely due to favorable changes in the fair value of equity index put option contracts and gains from equity securities. The railroad, utilities, and energy segments also showed strong operational performance. Berkshire Hathaway continued to expand its holdings, notably with the acquisition of a significant stake in H.J. Heinz Holding Corporation, underscoring its strategic approach to long-term value creation. The company maintained a strong financial position with substantial cash reserves and shareholder equity, positioning it well for future investments and acquisitions.
Financial Highlights
29 data points| Revenue | $44.69B |
| Operating Expenses | $37.80B |
| Net Income | $4.54B |
| EPS (Basic) | $2763.00 |
| Shares Outstanding (Basic) | 1.64M |
Key Highlights
- 1Net earnings attributable to Berkshire Hathaway shareholders increased significantly, reaching $4.54 billion in Q2 2013 and $9.43 billion in the first six months of 2013, up from $3.11 billion and $6.35 billion, respectively, in the prior year.
- 2Investment and derivative gains contributed substantially to net earnings, with a pre-tax gain of $953 million in Q2 2013 and $2.66 billion in the first six months, largely driven by equity index put options and equity security gains.
- 3The insurance group reported strong underwriting gains, totaling $530 million in Q2 2013 and $1.43 billion in the first six months, supported by solid performance across GEICO, General Re, and Berkshire Hathaway Reinsurance Group.
- 4Railroad, Utilities, and Energy segments, primarily BNSF and MidAmerican, demonstrated robust operating revenues and earnings, benefiting from increased volumes and improved pricing.
- 5Berkshire Hathaway completed a significant investment in H.J. Heinz Holding Corporation through a newly formed entity, Heinz Holding, for approximately $12.25 billion in June 2013.
- 6Consolidated shareholders' equity increased to $202.0 billion as of June 30, 2013, up from $191.6 billion at the end of 2012, reflecting strong retained earnings and other comprehensive income.
- 7The company maintained a strong liquidity position with $31.2 billion in cash and cash equivalents in the insurance and other segment as of June 30, 2013.