Berkshire's Building Product Sales Rose 15.7% in '22, Retail Sales Up 1.8%
Omaha, NE, February 27, 2023-Berkshire Hathaway reported fiscal year 2022 results over the weekend; the company owns Shaw Industries, Nebraska Furniture Mart and RC Willey.
For the company’s building products division, of which Shaw Industries is a part, the company reports that revenues of the building products group increased $3.9 billion or 15.7% in 2022 compared to 2021. “During 2021 and much of 2022, our businesses experienced relatively strong customer demand and higher sales volumes. Our building products businesses benefited in recent years from the low interest rate environment. However, interest rates in the U.S. increased significantly during 2022, which contributed to slowing demand for new home construction in the fourth quarter. As such, comparative revenues and earnings in the near term will likely decline from current levels,” the company says.
In addition to Shaw, the building products group includes manufactured and site-built home construction and related lending and financial services (Clayton Homes); insulation, roofing and engineered products (Johns Manville); bricks and masonry products (Acme Building Brands); paint and coatings (Benjamin Moore); and residential and commercial construction and engineering products and systems (MiTek).
For its retail division, which includes Nebraska Furniture Mart and RC Wiley, revenues in 2022 increased $337 million (1.8%) compared to 2021, reflecting an increase at Berkshire Hathaway Automotive (BHA), partially offset by combined lower revenues from our other retailers. BHA’s revenues in 2022 increased 6.1% compared to 2021. Revenues from new and used retail vehicle sales increased 5.9% compared to 2021, attributable to higher average vehicle transaction prices, partly offset by a 4.5% decline in total retail units sold. New vehicle unit sales continue to be constrained by relatively low new vehicle production, although production gradually trended higher during 2022. Revenues from BHA’s service and repair business increased 11.1% versus 2021. Revenues of the home furnishings group declined 2.6%, while revenues of all other retailers declined 8.9%, primarily due to lower sales at Pampered Chef.
Say the company, “Our largest retailing business is Berkshire Hathaway Automotive, Inc. (“BHA”), which represented 65% of our combined retailing revenue in 2022. BHA consists of over 80 auto dealerships that sell new and pre-owned automobiles and offer repair services and related products. BHA also operates two insurance businesses, two auto auctions and an automotive fluid maintenance products distributor. Our retailing businesses also include four home furnishings businesses (Nebraska Furniture Mart, R.C. Willey, Star Furniture and Jordan’s), which sell furniture, appliances, flooring and electronics. The home furnishings group represented 20% of the combined retailing revenues in 2022.”
Related Topics:Shaw Industries Group, Inc., Nebraska Furniture Mart