Summary
Berkshire Hathaway Inc. (BRK-B) reported its first-quarter 2022 financial results, showing a significant decrease in net earnings attributable to shareholders, falling to $5.46 billion from $11.71 billion in the prior year's first quarter. This decline was primarily driven by a substantial negative swing in investment and derivative contract gains (losses), which went from a gain of $5.70 billion in Q1 2021 to a loss of $1.98 billion in Q1 2022, largely due to unrealized losses on equity securities. Despite the drop in net earnings, the company's operational performance remained robust. Revenues increased to $70.81 billion from $64.60 billion year-over-year. Insurance underwriting, while experiencing a challenging quarter with GEICO reporting an underwriting loss, saw a modest overall net underwriting profit of $47 million. The railroad, utilities, energy, manufacturing, service, and retailing segments all demonstrated strong revenue and earnings growth, highlighting the resilience of Berkshire's diverse business portfolio amidst ongoing supply chain disruptions and inflationary pressures.
Financial Highlights
28 data points| Revenue | $70.84B |
| Operating Expenses | $62.25B |
| Net Income | $5.58B |
Key Highlights
- 1Net earnings attributable to Berkshire Hathaway shareholders decreased significantly to $5.46 billion in Q1 2022 from $11.71 billion in Q1 2021, primarily due to negative investment and derivative contract gains/losses.
- 2Total revenues increased to $70.81 billion in Q1 2022 from $64.60 billion in Q1 2021, driven by growth across most operating segments.
- 3Insurance underwriting reported a net underwriting earnings of $47 million, a sharp decline from $764 million in the prior year, heavily impacted by an underwriting loss at GEICO due to increased claims severity and frequency.
- 4GEICO's underwriting results worsened considerably, showing a pre-tax loss of $178 million compared to a pre-tax profit of $1.02 billion, driven by rising claims costs.
- 5Railroad, Utilities & Energy, and Manufacturing, Service & Retailing segments showed strong operational performance with increased revenues and pre-tax earnings.
- 6Berkshire repurchased $3.2 billion of its own stock in the first quarter of 2022.
- 7The company announced an agreement to acquire Alleghany Corporation for approximately $11.6 billion, expected to close in the fourth quarter of 2022.