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B of A Profit Increases 13% in 3rd Quarter; Loans, Fees Cited : Earnings: Northrop Grumman and Microsoft also see their net income soar in the period.

October 20, 1994

BankAmerica, the nation's second-largest banking company, said Wednesday that growth in loans and consumer banking fees boosted its profit 13% during the three-month period ended Sept. 30.

The San Francisco-based bank earned $547 million, or $1.36 a share, in the third quarter, compared to $486 million, or $1.19 a share, during the same period last year.

BankAmerica's acquisition of Chicago-based Continental Bank Corp., completed in August, was a boon for the company during the quarter.

New loans and income from core banking services and interest-earning activities all grew substantially because of Continental's contributions.

Loans were up $13.8 billion to $129.5 billion from a year ago. Income from core banking services rose 6% to $1.07 billion from a year ago, while interest income rose 5% to $1.79 billion.

Northrop Grumman Corp. reported a 50% gain in third-quarter earnings.

The B-2 bomber builder said it had better results in aircraft and electronics but more losses on a cruise missile development program.

The company, formed by Northrop Corp.'s purchase of Grumman Corp. and Vought Aircraft Co. earlier this year, had third-quarter net income of $39 million, or 79 cents a share. That compared with $26 million, 54 cents a share, in the July-September period of 1993.

Sales were $1.93 billion, up 58% from the $1.22 billion recorded in the 1993 third quarter.

Comparative results for 1993 do not include Vought or Grumman data.

Without the Grumman and Vought acquisitions, Northrop's third-quarter sales would have declined 6% due primarily to lower B-2 revenue and fewer deliveries of 747 jetliner components it makes for Boeing Co.

Software giant Microsoft Corp. reported sharply higher fiscal first-quarter profit, saying that demand for its personal computer software is growing steadily.

The Redmond, Wash.-based company had net income of $316 million, or 51 cents a share, up 32% from from $239 million, or 39 cents a share, in the year-ago quarter.

Revenues jumped to $1.25 billion from $983 million.

"These results reflect the ongoing success of Microsoft Windows as well as the continuing growth of our desktop applications revenue led by Microsoft Office," Chief Financial Officer Mike Brown said in a statement.

He said the results reflect "another solid quarter for the company."

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