General Bearing Reports First Quarter 2007 Results

General Bearing Reports First Quarter 2007 Results General Bearing Co. reported operating results for first quarter 2007, ended March 31. First quarter sales were up, reaching $31.7 million, 13% higher than the $27.9 million recorded in the same quarter 2006. Net income dropped, however, to $1.7 million, or 5.5% of sales, from 2006's $2.1 million, or 7.4% of sales. The decline was initially reflected in the top line operating income, hit by higher cost of sales, but declined further as higher SG&A and "Other" expenses were applied before Net income. The unexpected misstep in operating results deflated the company's high flying share price, which had been testing new highs approaching $20. Falling back to a recent $16, the pullback is only large in relation to recent prices. Otherwise, General Bearing's stock has been on a long-term tear -- just over two years ago, shares traded in the $5.00 range. 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.