Company: BRK-A
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000950170-25-025210
Chunk: 94

Company: BERKSHIRE HATHAWAY INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1B
Chunk 94
---
 increased 15.5% in 2024 compared to 2023, primarily due to increased interest income from higher average loan balances. Loan balances, net of allowances for credit losses, were approximately $27.2 billion as of December 31, 2024, an increase of 14.0% since December 31, 2023. Loan portfolio balances are largely funded by borrowings from Berkshire finance affiliates. 

Clayton Homes’ pre-tax earnings declined $115 million (5.6%) in 2024 compared to 2023, attributable to lower earnings from financial services (4.4%) and manufacturing activities (9.4%). The decline in financial services earnings reflected increased losses from homeowner property insurance claims, increased expected loan loss provisions due to higher loan originations, higher interest expense on borrowings from Berkshire finance affiliates. Interest expense increased $203 million (38%) in 2024 versus 2023, as borrowings from affiliates increased $6.6 billion in 2024 to $24.3 billion at December 31, 2024. The corresponding interest income on such borrowings is included in the “Other” earnings section on page K-54. The decline in manufacturing earnings was largely attributable to lower gross margin rates due to the increased cost of building homes to the Department of Energy’s Zero Energy Ready Home Program requirements (such incremental costs are partially offset by income tax credits). 

Our other building products businesses generated revenues of approximately $14.1 billion in 2024, a decline of $413 million (2.8%) versus 2023. Sales volumes in 2024 increased at Johns Manville and declined at the other businesses in the group, while average selling prices were lower at Johns Manville and MiTek and slightly higher at our other businesses.

Pre-tax earnings of our other building products businesses increased $61 million (2.9%) in 2024 compared to 2023. Earnings as a percentage of revenues increased 0.9 percentage points in 2024 to 15.6% compared to 2023. Earnings increased in 2024 from higher average gross margin rates arising from lower raw material costs and improved manufacturing efficiencies at certain of the businesses, partially offset by higher selling, general and administrative expenses and the impact of lower sales. Selling, general and administrative expenses in each year included losses from business restructuring activities and divestitures, as well as legal settlements and accruals. 

2023 versus 2022

Revenues of the