NBC feathers GE cap

Peacock helps wing parent to record qtr. profit

By MARC GRASER

HOLLYWOOD -- General Electric Co. reported record second-quarter earnings Thursday, as a strong performance by NBC helped propel the conglom's earnings up 13% to $2.82 billion -- the highest quarterly profit in its history -- and revenues up 9% to $27 billion.

A strong May sweeps performance helped NBC post profits of $544 million for the quarter ended June 30, a 15% increase over the $475 million earned during the period a year ago. The television unit's revenues rose 9% to $1.8 billion.

Financial unit powers perf

Despite projections of profitability from NBC, which includes cablers CNBC and fledgling MSNBC, GE said its overall performance was powered by its financial unit, GE Capital Services, where profits rose 17% to $1 billion, up from $933 million in the same period last year.

GE's overall results from its 28 businesses beat Wall Street estimates, with the company's profits besting its second-quarter take of $2.5 billion a year ago.

The surge in revenues rose above the $25 billion it collected for the quarter in 1998.

GE noted that its operating margin rose to 19% of sales from 18% in the year-earlier quarter, demonstrating the ability of "GE's diverse mix of leading global businesses to deliver top-line growth, increased margins and strong cash generation," GE chairman John F. Welch said.

"We're getting to a point where we expect these good quarters, considering that they haven't (disappointed) since 1994," said Bill Fiala, analyst at Edward Jones in St. Louis. "The bottom line is they have figured out how to run a diversified business."

GE stock rode the market's slight downward turn on Thursday, falling 94¢ to close at $117 a share. The company's stock hit a record high of $118.75 in April.