BERKSHIRE HATHAWAY INC.
|FOR IMMEDIATE RELEASE||
September 20, 2001
Omaha, NE (BRK.A; BRK.B) ¾ During the past eight days, Berkshire Hathaway Inc. has continued to evaluate the potential impact on its insurance operations from the tragic events of September 11, 2001. Berkshire continues to believe that its guess as reported on September 12, 2001 is still reasonable and that it will incur 3-5% of the industry’s loss from this catastrophe. Berkshire’s present guess as to the impact on its reported results will be the recognition of pre-tax losses of $2.2 billion. Unless further information indicates otherwise, this charge will be incorporated into Berkshire’s third quarter earnings.
Berkshire is a very large U.S. taxpayer having paid about $2.7 billion in U.S. Federal income taxes for the two years ending December 31, 2000. Since a very high percentage of the losses will be borne by U.S. subsidiaries, Berkshire will receive an immediate tax benefit in the form of a reduction of estimated taxes payable during the remainder of 2001 and a prompt refund of estimated payments made earlier in the year. Berkshire will continue to evaluate the impact of the disaster on its reinsurance results and will report significant changes in its estimates as they become known.
Certain statements contained in this press release are "forward looking" statements within the meaning of the Private Securities Litigation Act of 1995. These statements are not guaranties of future performance and actual results may differ materially from those forecasted.
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