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Berkshire Hathaway Inc. News Release
[May 02, 2014]

Berkshire Hathaway Inc. News Release

OMAHA, Neb. --(Business Wire)--

Berkshire Hathaway Inc. (BRK.A; BRK.B) -

Berkshire's operating results for the first quarter of 2014 and 2013 are summarized in the following paragraphs. However, we urge investors and reporters to read our 10-Q, which has been posted at The limited information that follows in this press release is not adequate for making an informed investment judgment.

Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarter of 2014 and 2013 are summarized below. Earnings are stated on an after-tax basis. (Dollar amounts are in millions, except for per share amounts).


First Quarter




Operating earnings $ 3,533 $ 3,782
Investment and derivative gains/losses -
Investments 1,019 326
Derivatives   153   784
  1,172   1,110
Net earnings attributable to Berkshire shareholders $ 4,705 $ 4,892
Operating earnings per Class A equivalent share $ 2,149 $ 2,302
Investment and derivative gains/losses per Class A equivalent share   713   675
Net earnings per Class A equivalent share attributable to Berkshire shareholders





Average Class A equivalent shares outstanding 1,644,059 1,643,181

Note: Per share amounts for the Class B shares are 1/1,500th of those shown for the Class A.

An analysis of Berkshire's operating earnings follows (dollar amounts are in millions).

First Quarter
2014     2013
Insurance-underwriting $ 461 $ 901
Insurance-investment income 720 799
Railroad, utilities and energy 1,176 1,192
Other businesses 1,171 1,053
Other   5   (163 )
Operating earnings $ 3,533 $ 3,782  

In the table at the top of the page (which, as noted, reports after-tax results), we give investment and derivative gains/losses lines of their own because the amounts of these in any given quarter or year is usually meaningless.

At March 31, 2014, our book value had increased by 2.6% since yearend 2013 to $138,426 per Class A equivalent share. Insurance float (the net liabilities we assume under insurance contracts) at March 31, 2014 was approximately $78 billion.

Use of Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein.

Berkshire presents its results in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use Berkshire's financial information. That presentation includes the use of certain non-GAAP financial measures. In addition to the GAAP presentations of net earnings, Berkshire shows operating earnings defined as net earnings exclusive of investment and derivative gains/losses.

Although the investment of insurance and reinsurance premiums to generate investment income and investment gains or losses is an integral part of Berkshire's operations, the generation of investment gains or losses is independent of the insurance underwriting process. Moreover, under applicable GAAP accounting requirements, losses can be created as the result of other-than-temporary declines in value without actual realization or when certain types of investments are marked-to-market through earnings. In sum, investment and derivative gains/losses for any particular period are not indicative of quarterly business performance.

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Cautionary Statement

Certain statements contained in this press release are "forward looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.

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