GE Profit Up 5% in Quarter; RCA Deal Swells Revenue

General Electric said its profit rose 5% in the third quarter to $604 million from $575 million in the same period in 1985.

Third-quarter revenue jumped 42% to $9.3 billion from $6.5 billion last year. Much of the increase was attributed to GE’s acquisition of RCA.

The Fairfield-based company acquired RCA in early June for $6.4 billion in the largest non-oil merger in corporate history.

Net income for the first nine months also grew by 5% to $1.76 billion from $1.68 billion in the first three quarters of 1985. Revenue for the nine months of 1986 totaled $22.9 billion, 17% more than the $19.6 billion that GE reported for the same period a year ago.

GE’s third-quarter net earnings this year included $99 million from RCA operations before estimated acquisition costs, and GE’s revenue included $2.31 billion from RCA.

RCA has added $135 million in net earnings and $3.1 billion in revenue to GE since the merger, the company said. RCA’s earnings in that period have roughly offset the acquisition costs, resulting in no dilution in GE’s earnings per share, GE said.

“Rapid progress has been made toward achieving the potential of the RCA acquisition,” Chairman John F. Welch Jr. said. “The National Broadcasting Co. continues on its course as the leader in network television. Integration of a number of compatible General Electric and RCA businesses is well under way.

“Also, we have begun to dispose of certain businesses such as records, life insurance and carpets which are not in keeping with General Electric’s strategic objectives.”