Berkshire Hathaway Net Earnings Rose Almost 15% YOY in Q4

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Berkshire Hathaway Net Earnings Rose Almost 15% YOY in Q4

Omaha, NE, February 27, 2017—Berkshire Hathaway, owner of Shaw Industries, reported Q4 2016 net earnings of $6.286 billion, or $3,823 per Class A share equivalent, compared to $5.478 billion, or $3,333 a share, in Q4 2015.

Operating earnings fell to $4.382 billion in Q4 2016 from $4.673 billion in the year prior.

For fiscal year 2016, Berkshire reported net earnings of $24.074 billion, or $14,645 per Class A share, compared to $24.083 billion, or $14,656 per share, in FY 2015.

Operating earnings for FY 2016 rose to $17.577 billion from $17.358 billion in FY 2015.

Of its building products division, which includes Shaw, Berkshire reports, “Building products revenues increased $456 million (4.4%) in 2016 compared to 2015, reflecting volume-driven revenue increases by MiTek, Johns Manville, Acme and Shaw, as well as revenues from bolt-on acquisitions by Shaw and MiTek. The revenue increase reflected increased unit sales across several product categories, partly offset by lower average sales prices and changes in product mix. Pre-tax earnings increased $11 million (0.9%) in 2016 compared to 2015. The favorable effects of increased sales volume and lower manufacturing costs in 2016 (attributable to deflation in certain commodity unit costs) were offset by increased charges for asset impairments, pension settlements and environmental claims."

The report continues, “Revenues increased $192 million (2%) in 2015 compared to 2014. The revenue increase reflected sales volume increases at Shaw, Johns Manville and MiTek, as well as the impact of bolt-on business acquisitions, partially offset by the unfavorable foreign currency translation from a stronger U.S. Dollar ($165 million). Pre-tax earnings increased $271 million (30%) compared to 2014. The overall increase in earnings was primarily attributable to the aforementioned increases in revenues and lower average raw material and energy costs, partially offset by the negative impact of foreign currency translation and increased restructuring charges. Shaw, Johns Manville and Benjamin Moore generated most of the comparative increase in earnings.”


Related Topics:Shaw Industries Group, Inc.