RCA’s 1st-Quarter Profit Jumps 13% on 10.6% Rise in Revenue
RCA Corp. said Wednesday that its first-quarter profit jumped 13% over a year ago on a 10.6% rise in revenue.
The company, which has agreed to be acquired by General Electric for $6.28 billion, said its first-quarter net income came to $73.4 million, compared to $65 million in the same period a year ago.
Revenue totaled $2.29 billion, compared to $2.07 billion.
“The first-quarter results exceeded expectations and reflected an outstanding performance by NBC and a strong performance by aerospace and defense,” Robert Frederick, president and chief executive, said in a statement. “We are optimistic that our performance will also be good for the balance of the year.”
The New York-based company said its National Broadcasting Co. unit had record first-quarter sales and earnings, exceeding the prior year by 24% and 50%, respectively. It attributed the increases to growing strength of the network’s prime-time schedule.
RCA said its aerospace and defense division also had record sales and earnings for the quarter.
The consumer electronics division, which raised prices for videocassette recorders and color televisions in the first quarter, had lower unit shipments. However, earnings increased from a year ago, partially because of those higher prices.
In music and video, sales increased significantly, reflecting a merger with Ariola Records, RCA said. Earnings increased mainly as a result of a continued strong performance by RCA’s joint ventures with Columbia Pictures to distribute home videos. In the communications segment, sales and earnings were lower than a year ago because of increased competition in the private leased-channel market and start-up costs related to a satellite system, RCA said.