BERKSHIRE HATHAWAY INC.
NEWS RELEASE
| FOR IMMEDIATE RELEASE | May 12, 2000 |
Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the first quarters ended March 31, 2000 and 1999 are summarized below. Amounts are stated on an after-tax basis (dollar amounts are in millions, except per share amounts).
| 2000 | 1999 | |
| Earnings from operations before purchase-accounting adjustments | $496 | $443 |
| Purchase-accounting adjustments | (142) | (149) |
| Earnings from operations | 354 | 294 |
| Realized investment gain | 453 | 247 |
| Net earnings | $807 | $541 |
| ==== | ==== | |
| Average Class A equivalent shares outstanding | 1,520,680 | 1,518,897 |
| Earnings per share: | ||
| Earnings from operations | $233 | $194 |
| Net earnings | $531 | $356 |
| ==== | ==== |
Selected highlights regarding results for the quarter ended March 31, 2000 follow.
During the past twelve months, GEICO voluntary auto policies in-force increased 20.5%. Growth in policies in-force is expected to continue to be strong during the remainder of the year. However, it is anticipated that the rate of growth will decline modestly.
Berkshire’s consolidated "float" totaled approximately $25.4 billion at March 31, 2000, up approximately $92 million from year-end 1999. The annualized cost of float during the first quarter was 5.2%, down slightly from 1999’s full year cost of 5.8%. Absent a mega-catastrophe, it is anticipated that the cost will decline further during the remainder of the year.
Realized investment gain has been a recurring element in Berkshire’s net earnings for many years. The amount may fluctuate significantly from period to period, with a meaningful effect upon Berkshire’s consolidated net earnings. However, the amount of realized investment gain or loss for any given period has no predictive value, and variations in amount from period to period have no practical analytical value, particularly in view of the net unrealized price appreciation now existing in Berkshire’s consolidated investment portfolio.
Berkshire’s first quarter interim report to shareholders will be posted on the Internet later today at approximately 5:00 p.m. Eastern time where it can be accessed via www.berkshirehathaway.com. It will contain much additional information about Berkshire’s results of operations and financial position.
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.
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