RCA Net Off 8% in Quarter but Hits Record for Year

RCA Corp. reported that its net income fell 8% in the last quarter of 1985 but rose 8% to a record $369.1 million for the full year. It reported record revenue for the quarter and full year.

The New York-based conglomerate owns the NBC television and radio networks. It agreed in December to be acquired by General Electric for $6.28 billion.

RCA said NBC’s earnings set a record for a third consecutive year, rising 54% on a 12% gain in revenue. It said NBC had “its most successful prime-time schedule in 30 years and won the important November ratings sweeps period for the first time in 11 years.”

Revenue and earnings in RCA’s defense and aerospace division set a record for the 10th consecutive year, the company said.

On the other hand, RCA said a severe slump in the semiconductor industry caused it to report a loss in its solid state division, and it said its video components and display division also reported a small loss.

RCA said its net earnings in the three months ended Dec. 31 fell to $94.4 million from $102.8 million in the fourth quarter of 1984. It said revenue in the fourth quarter rose 5% to a record $2.57 billion from $2.45 billion a year earlier.

Net income from continuing operations was $94.4 million, down from $104.9 million a year earlier.

For all of 1985, RCA said its record net earnings of $369.1 million compared to $341 million in 1984. Revenue for the year rose 3% to $8.97 billion from $8.67 billion a year earlier.

Net income from continuing operations for all of 1985 was $243.9 million, up from $196.4 million in 1984.

RCA sold Hertz Corp. to UAL Inc., the parent of United Airlines, for $587.5 million in August, resulting in an after-tax gain of $92.6 million. Also, in April, 1984, RCA sold the financing operations of CIT Financial Corp. to Manufacturers Hanover Corp. for $1.51 billion. It later sold one of CIT’s insurance companies and is offering the other for sale.

Results also reflect after-tax charges for restructuring of $81 million in the third quarter of 1985 and $94.5 million in the first quarter of 1984.