BERKSHIRE HATHAWAY INC.
NEWS RELEASE
| FOR IMMEDIATE RELEASE | November 8, 2002 |
Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the third quarter and nine months ended September 30, 2002 and 2001 are summarized below. Amounts are stated on an after-tax basis (dollar amounts are in millions, except per share amounts).
|
Third Quarter |
First Nine Months |
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|
2002 |
2001 * |
2002 |
2001 * |
|
|
Earnings (loss) from operations before purchase-accounting- |
||||
|
adjustments |
$1,134 |
$ (750) |
$3,000 |
$ 372 |
|
Purchase-accounting adjustments |
(20 ) |
(145 ) |
(36 ) |
(452 ) |
|
Earnings (loss) from operations |
1,114 |
(895) |
2,964 |
(80) |
|
Realized investment gain |
27 |
216 |
138 |
780 |
|
Net earnings (loss) |
$1,141 |
$ (679) |
$3,102 |
$ 700 |
| ==== | ==== | ==== | ==== | |
|
Average Class A equivalent shares outstanding |
1,534,063 |
1,527,347 |
1,532,928 |
1,526,973 |
|
Net earnings (loss) per share |
$ 744 |
$ (445) |
$2,024 |
$ 458 |
| ==== | ==== | ==== | ==== | |
*Results for the third quarter and first nine months of 2001 include after-tax losses of $1.45 billion from the September 11th terrorist attack.
Selected highlights regarding results for the quarter ended September 30, 2002 follow.
Underwriting results at GEICO and at National Indemnity’s reinsurance division improved in both the third quarter and first nine months of 2002. Underwriting results for the first nine months at General Re were negatively impacted by $447 million of increases in prior-year loss reserves. Berkshire’s consolidated "float" totaled approximately $39.5 billion at September 30, 2002, up approximately $4.0 billion from year-end 2001 and $1.0 billion from June 30, 2002.
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 third quarter interim report to shareholders will be posted on the Internet later today at approximately 6:00 p.m. Central 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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