What was the primary driver of the decrease in net earnings compared to the previous year?

The primary driver for the decrease in net earnings was a significant increase in insurance underwriting losses, particularly from catastrophe events such as Hurricanes Harvey, Irma, and Maria, and an earthquake in Mexico. These events resulted in approximately $3 billion in pre-tax losses for the third quarter of 2017.

How did the company's investment portfolio perform during the period?

The company's investments in equity securities performed strongly, with their fair value increasing substantially. For the first nine months of 2017, net unrealized gains on equity securities (after-tax and net of noncontrolling interests) included in other comprehensive income were approximately $10.9 billion. The company also realized significant investment gains, including $657 million in the third quarter and $1.26 billion for the first nine months of 2017.

What is the outlook for Berkshire Hathaway Energy and BNSF?

Berkshire Hathaway Energy reported increased earnings, supported by its regulated utility operations and expanding real estate brokerage business. BNSF also demonstrated growth with higher revenues and earnings due to increased volumes and rates. Both segments are expected to continue contributing positively to Berkshire's overall performance.

How is Berkshire Hathaway managing its significant liquidity position?

Berkshire Hathaway maintained a strong liquidity position with approximately $96.6 billion in cash, cash equivalents, and U.S. Treasury Bills held by its insurance and other businesses as of September 30, 2017. The company prioritizes financial strength and maintaining ample liquidity, with repurchases of its own stock being an ongoing option if they meet specific valuation and liquidity criteria.

BRK-B/BRK-A 10-Q Quarterly Report Q3 FY2017

Summary

Berkshire Hathaway Inc. reported solid financial results for the third quarter and first nine months of 2017, demonstrating resilience despite significant catastrophe losses. Net earnings attributable to Berkshire Hathaway shareholders were $4.07 billion for the quarter and $12.39 billion for the nine-month period, a notable decrease from the prior year primarily due to a substantial increase in insurance underwriting losses from major hurricanes and earthquakes. The company's insurance operations were significantly impacted by approximately $3 billion in pre-tax losses from Hurricanes Harvey, Irma, and Maria, along with an earthquake in Mexico. Despite these headwinds, the company's diverse business segments, including railroad, utilities, energy, manufacturing, and finance, generally performed well, contributing to overall financial stability. Significant investments in equity securities continue to be a major driver of Berkshire's financial performance, with unrealized gains increasing substantially during the period.

Financial Highlights

28 data points

Beta

Revenue

$59.51B

Net Income

$4.07B

0.1% Net Margin

Total Assets

$681.55B

Cash & Equivalents

$42.71B

Free Cash Flow

$7.62B

Financial Statements

Beta

Revenue	$59.51B
Operating Expenses	$55.15B
Net Income	$4.07B

Key Highlights

1Net earnings attributable to Berkshire Hathaway shareholders were $4.07 billion for Q3 2017 and $12.39 billion for the first nine months of 2017.
2Insurance underwriting operations incurred significant pre-tax losses of approximately $3 billion in Q3 2017 due to major catastrophe events (Hurricanes Harvey, Irma, Maria, and an earthquake in Mexico).
3Total revenues increased to $60.5 billion for the quarter and $183.2 billion for the nine months ended September 30, 2017.
4Investments in equity securities showed substantial growth, with fair value increasing significantly, reflected in both realized and unrealized gains.
5Berkshire Hathaway Energy reported increased earnings, driven by regulated utility operations and diversification into real estate brokerage.
6BNSF railroad operations saw increased revenues and earnings, primarily due to higher volumes and average revenue per car/unit.
7The company maintained substantial liquidity, with cash, cash equivalents, and U.S. Treasury Bills totaling $96.6 billion at quarter-end.

BERKSHIRE HATHAWAY INC Quarterly Report for Q3 Ended Sep 30, 2017

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions