RCA’s Earnings Rise 5.4% to Record in 2nd Quarter

RCA said earnings in the second quarter rose 5.4% from a year earlier to reach the highest level for any quarter in the company’s history, helped by strong performances from NBC and its aerospace and defense businesses.

Profit in the three months ended June 30 rose to $115.8 million from $109.9 million a year earlier. Revenue climbed to a record $2.54 billion from $2.48 billion.

Spurred by gains from its NBC television network, RCA reported record sales and the highest quarterly earnings in the history of its entertainment unit. Although it did not provide dollar amounts, it said NBC earnings rose 43% from the same period a year ago.

RCA’s aerospace and defense businesses also recorded new highs for second-quarter sales and earnings. Other bright spots were gains in its record and videotape businesses.

But RCA said competitive pressures were depressing profits from color television sales, contributing to lower sales and earnings for its consumer electronics unit. It also reported that reduced demand for semiconductors hurt results from its solid state division.

RCA’s communications business reported a decline in operating earnings despite record sales.

The Hertz car-rental business, which RCA has agreed to sell to UAL Inc., had substantial declines in pretax profits, reflecting intense competition and a weak market for sales of its used cars.