General Bearing Reports 2005 Results

General Bearing Co. (USA; Pink Sheets: GNRL.PK) reported operating results for 2005, keeping alive a string of exceptional sales and earnings reports. Sales for 2005 were $109.9 million, up almost 31% over 2004's $84.1 million. On those sales, operating income more than doubled, reaching $14.8 million from 2004's $5.5 million. Net income for 2005 rose 520%, to $7.3 million or 6.6% of sales, from $1.4 million, or 1.7% of sales, in 2004. Other items in the financial reports show General increased its bank debt by $12.4 million during the year, repaid $4.5 million of its revolver, and issued 29,500 treasury shares as board compensation. The company also made $7.5 million in unspecified fixed asset acquisitions, and built inventory by net $6.8 million to FYE $33.9 million. At General's FY2005 $110 million run rate, however, inventory still improved to 3.2 turns, from 3.1 turns on FY 2004 $84.1 million sales to FYE $27.1 million inventory. Founded by Seymour Gussack in 1958, General Bearing is a multinational manufacturer and distributor of ball bearings, tapered, spherical and cylindrical roller bearings, and bearing components. The company has been operating an array of joint ventures in China since 1987, the same year it acquired Hyatt Railway Products in the U.S. out of bankruptcy. Lingering effects of the troubled Hyatt acquisition forced General Bearing into Chapter 11 bankruptcy protection from mid-1991 through 1993; it has since emerged to become one of the strongest long-term performers in the bearing industry. General Bearing went public through an IPO in 1997. General's markets are manufacturers of automobiles and trucks, rail equipment, office equipment, general machinery and appliances, as well as the industrial replacement market. Bearings are marketed under The General and Hyatt brands. General Bearing's President and CEO, David Gussack was asked to comment on the accelerating pace of sales growth and profitability. Mr. Gussack said: "Our 2005 revenue growth reflects improvement in virtually every segment we participate in, worldwide. Truck, Trailer, Automotive, Industrial, Rings/Balls for the bearing industry, and all aftermarket segments (rail, industrial and HDD) all experienced healthy growth for the year."