BERKSHIRE HATHAWAY INC.
NEWS RELEASE
| FOR IMMEDIATE RELEASE | May 14, 1998 |
Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters ended March 31, 1998 and 1997 are summarized below. Amounts are stated on an after-tax basis (dollar amounts are in millions except per share amounts):
1998 1997
--------- ---------
Earnings from operations . . . . . . . . . . . . . $252 $263
Realized investment gain . . . . . . . . . . . . . 470 21
---- ----
Net earnings . . . . . . . . . . . . . . . . . . . $722 $284
==== ====
Average Class A equivalent shares outstanding. . . 1,240,710 1,232,245
Earnings per share:
Earnings from operations. . . . . . . . . . . . . $203 $214
Net earnings. . . . . . . . . . . . . . . . . . . $582 $231
==== ====
The net earnings figures for 1998 are meaningless in evaluating the Company. 1998's first quarter earnings include $470 million of after-tax realized investment gains compared to $21 million in 1997. While the realized gains had a material impact on Berkshire's 1998 reported earnings, they had a very minor impact on Berkshire's shareholders' equity. Berkshire records its investments at market value and most of the appreciation in the investments sold during 1998's first quarter had been previously reflected as a component of shareholders' equity in periods prior to 1998's first quarter.
Berkshire's first quarter interim report to shareholders report will be posted on the Internet on May 15, 1998 where it can be accessed via www.berkshirehathaway.com.
Berkshire Hathaway and its subsidiaries engage in a number of diverse business activities among
which the most important is the property and casualty insurance business conducted on both a direct and
reinsurance basis. Common stock of the Company is listed on the New York Stock Exchange, trading
symbols BRK.A and BRK.B.