GE Posts Rise Of 8.6% in Net For 3rd Quarter --- Sales Show 9.2% Gain; Drop In Taxes Cited, but Firm Labels Results `Good'
FAIRFIELD, Conn. -- General Electric Co. reported an 8.6% increase in third-quarter earnings as "longer cycle" businesses offset softness in other areas.</br></br>The electrical and consumer products, broadcasting and financial services concern said net income rose to $1.03 billion, or $1.16 a share, from $945 million, or $1.04 a share, a year earlier. Revenue rose 9.2% to $14.2 billion from $13 billion.</br></br>Per-share earnings were up 12%, partly reflecting purchases by the company of 12 million of its shares during the quarter. GE had 878 million shares outstanding Sept. 30, compared with 906.4 million a year earlier. GE has bought back 35 million shares since its share-purchase program began in November.</br></br>GE Chairman John F. Welch Jr. termed the performance "good" in spite of a weakening economy and the Mideast crisis, which he said slowed such lines as plastics, lighting and appliances. Those are known as GE's "shorter cycle" businesses, as contrasted to "longer cycle" lines such as aircraft engines, medical systems and power generation. The chairman also said the GE Appliance unit was able to compensate for the sales softness with productivity gains.</br></br>Mr. Welch said that despite considerable uncertainty in the U.S. economy, GE "expects 1990 to be the fourth straight year of a double-digit increase in earnings per share."