Baby Bells: Bell Atlantic Corp. reported a...

Baby Bells: Bell Atlantic Corp. reported a rise of about 7% in third-quarter earnings, a gain due primarily to the sale of stock in a New Zealand phone company.

The Philadelphia-based phone company said profits totaled $382.7 million, or 98 cents a share, up from $358.4 million, or 91 cents a share, a year earlier. Revenue was nearly flat at $3.1 billion.

The company said earnings were bolstered by the sale of a major portion of its investment in Telecom Corp. of New Zealand. The stock sale increased quarterly earnings 19 cents per share, but the gain was partially offset by 3 cents per share in costs.

Meanwhile, U S West, based in Englewood, Colo., said it earned $269.3 million during the quarter, or 66 cents per share. That was down from $302.6 million, or 77 cents per share, a year earlier.

U S West said the 1991 quarter included a $17-million accounting charge to pay for a Washington state incentive regulation plan.

Third-quarter sales totaled $2.62 billion, up 5.6% from $2.48 billion a year earlier.

Dick McCormick, U S West president and chief executive, said the earnings decline was due primarily to the impact of interstate telephone rate reductions and expanding international investments.