WEST NYACK, NY--GENERAL BEARING CORPORATION (NASDAQ: GNRL) ANNOUNCED in June of this year, that it reached a three-year, $54 million agreement to supply certain wheel and axle bearings to General Motors Corporation (NYSE: GM).
Additionally, the Company recently announced that the contract with General Motors had been expanded from a 3-year, $54 million agreement to a 5-year, $95 million contract. The Company expects to begin shipping product early in the second half of 1998.
Certification procedures will create a staggered start date, though the company anticipates shipping approximately $6 million against the order in 1998 and $18 million in 1999, and annually thereafter for the life of the contract.
General Bearing President, David L. Gussack said, "The capital raised through General Bearing's recent initial public offering has enabled the company to upgrade and expand its manufacturing facilities in preparation for an order of this magnitude. Obviously, this $95 million agreement is very important to the Company and its shareholders in terms of revenues and earnings, and it is well within our current capacity."
Gussack anticipates a continuing and expanded business relationship with General Motors Corp. beyond the life of this contract, as well as expanding General Bearing's presence within the industry. Gussack noted that discussions are ongoing with other major U.S. automobile manufacturers.
Gussack added, "This order is the culmination of four years of intensive effort on the part of General Bearing employees, and it is representative of the respect our company has garnered within the automotive industry as a producer of low-cost, high-quality bearings."