General Bearing Reports 2006 Results

General Bearing Reports 2006 Results General Bearing Co. reported operating results for 2006, still keeping alive its string of exceptional sales and earnings reports. Sales for 2006 were $119.5 million, up almost 9% over 2005's $109.9 million. 2005 itself was up 31% over 2004. On those sales, operating income was strong, reaching $16.6 million from 2005's $14.8 million. Net income growth continued to leverage sales gains, hitting $8.3 million in 2006, up more than 15% over 2005's $7.2 million. Net margin in 2006 also held its upward momentum, a trend many bearing manufacturers have been unable to sustain. 2006 hit 6.9% of sales from 6.6% of sales in 2005, and 1.7% of sales in 2004. Other items in the financial reports show General built FYE inventory by $4 million to $38 million -- holding at approximately 3.1 turns. Current bank debt rose by $14 million, A/P by $3.3 million, long term debt dropped by $1 million to $6.6 million, additional treasury stock accumulated, and the company reversed its accumulated FYE 2005 $7 million deficit to show a positive FYE 2006 $1.4 million in retained earnings. For outsiders looking at a manufacturer, the level of internal investment, over depreciation and amortization, is a direct indicator of long-term health and management commitment. Through 2006, General Bearing's internal investment rate of $7.5 million continued on pace at more than double the $3.4 million in depreciation and amortization; numbers for 2005 were similar. 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, trailers, rail equipment, office equipment, general machinery and appliances, as well as the industrial replacement market. Bearings are marketed under The General and Hyatt brands.