Summary
Berkshire Hathaway Inc.'s first quarter 2021 results show a strong rebound from the prior year's pandemic-impacted period. Net earnings attributable to shareholders surged to $11.71 billion, a significant improvement from a net loss of $49.75 billion in the first quarter of 2020. This turnaround was largely driven by a substantial recovery in investment and derivative gains, which swung from a significant loss in Q1 2020 to a gain in Q1 2021. Operating businesses across most segments, including manufacturing, service, and retailing, also demonstrated robust recovery and growth compared to the previous year. The company maintained a strong financial position, with total shareholders' equity increasing to $456.18 billion. Cash and cash equivalents and short-term investments in U.S. Treasury Bills remained substantial, providing ample liquidity. Berkshire Hathaway continued its share repurchase program, reflecting confidence in its intrinsic value and commitment to capital allocation. The report indicates continued resilience and a positive outlook, albeit with acknowledgments of ongoing uncertainties related to the pandemic's long-term effects on certain operations.
Financial Highlights
28 data points| Revenue | $64.60B |
| Operating Expenses | $56.02B |
| Net Income | $11.84B |
Key Highlights
- 1Net earnings attributable to Berkshire Hathaway shareholders increased significantly to $11.71 billion in Q1 2021 from a loss of $49.75 billion in Q1 2020, largely due to a recovery in investment gains.
- 2Total revenues increased to $64.60 billion from $61.27 billion in the prior year's quarter, driven by strong performance across manufacturing, service, and retailing segments.
- 3Insurance underwriting earnings showed improvement, with GEICO posting a pre-tax underwriting profit of $1.02 billion, benefiting from reduced claims frequencies.
- 4The railroad, utilities, and energy segments (BNSF and Berkshire Hathaway Energy) demonstrated solid earnings growth, with BHE's net earnings attributable to Berkshire Hathaway shareholders increasing by 31.1%.
- 5Manufacturing, service, and retailing businesses experienced a significant rebound, with pre-tax earnings increasing by 28.5% compared to the prior year.
- 6Berkshire Hathaway repurchased $6.6 billion of its Class A and B common stock during the first quarter of 2021.
- 7Cash, cash equivalents, and short-term investments in U.S. Treasury Bills held by insurance and other businesses remained substantial at $138.1 billion.