10-QPeriod: Q3 FY2014

BERKSHIRE HATHAWAY INC Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 7, 2014For Securities:BRK-BBRK-A

Summary

Berkshire Hathaway Inc. (BRK-B) reported its third-quarter and nine-month results for 2014, showcasing robust growth driven by its diverse business segments. Net earnings attributable to Berkshire Hathaway shareholders increased to $15.72 billion for the first nine months of 2014, up from $14.49 billion in the same period of 2013. This growth was fueled by strong performance across its insurance, railroad, utilities, energy, and manufacturing operations. The company's financial position remained exceptionally strong, with total shareholders' equity reaching $240.3 billion as of September 30, 2014. Berkshire Hathaway maintained a substantial cash and cash equivalents balance of $62.38 billion, underscoring its commitment to financial strength and liquidity. Significant capital expenditures were made in the railroad, utilities, and energy segments, indicating continued investment in infrastructure and operational capacity. The company also highlighted several strategic acquisitions and business integration efforts throughout the period, positioning it for sustained future growth.

Financial Highlights

28 data points
Beta

Revenue

$51.20B

Net Income

$4.62B

9.0% Net Margin

Total Assets

$517.36B

Cash & Equivalents

$62.38B

Free Cash Flow

$8.24B

Financial Statements
Beta
Revenue$51.20B
Operating Expenses$44.45B
Net Income$4.62B
Shares Outstanding (Basic)1.64M

Key Highlights

  • 1Net earnings attributable to Berkshire Hathaway shareholders were $15.72 billion for the first nine months of 2014, an increase from $14.49 billion in the prior year period.
  • 2Total shareholders' equity grew to $240.3 billion as of September 30, 2014, reflecting strong retained earnings and comprehensive income.
  • 3Cash and cash equivalents stood at a healthy $62.38 billion as of September 30, 2014, providing significant financial flexibility.
  • 4The acquisition of NV Energy in December 2013 contributed positively to the Utilities and Energy segment's results.
  • 5Manufacturing, Service, and Retailing segments showed combined revenue growth of approximately 7% for the first nine months of 2014, with pre-tax earnings increasing by 14%.
  • 6The railroad business (BNSF) experienced revenue growth of 5% for the first nine months, despite operational challenges due to adverse weather.
  • 7Berkshire Hathaway continued its strategy of acquiring businesses, with notable acquisitions in beverage dispensing equipment, specialty products, and a television station.

Frequently Asked Questions

Berkshire Hathaway reported net earnings attributable to shareholders of $15.72 billion for the first nine months of 2014, an increase from $14.49 billion in the same period of 2013. This growth was driven by solid performance across its diverse operating businesses, including insurance, railroad, utilities, energy, manufacturing, and service sectors.

The insurance segment demonstrated strong underwriting gains, particularly in the GEICO and Berkshire Hathaway Primary Group. Net investment income for the insurance operations was $2.66 billion for the first nine months of 2014, slightly down from $2.80 billion in 2013, reflecting lower interest earned on fixed maturity securities and cash balances, partially offset by increased dividends from equity securities.

During 2014, Berkshire Hathaway completed several acquisitions, including the beverage dispensing equipment manufacturing and merchandising operations of IMI plc, Phillips Specialty Products Inc., and WPLG, Inc. (a television station). The acquisition of NV Energy in late 2013 also began contributing significantly to the Utilities and Energy segment's results in 2014.

Berkshire Hathaway maintained a substantial cash and cash equivalents balance of $62.38 billion as of September 30, 2014. The company continues to prioritize financial strength and liquidity. While no share repurchases were made under the authorized program during the first nine months of 2014, the program remains in place, allowing repurchases if shares trade at a discount to book value and cash reserves exceed $20 billion.