Contract Expected toYield $14 Million in Revenues to General Bearing
West Nyack, NY-February 12, 1998-General Bearing Corporation (Nasdaq: GNRL) announced today that it reached a two-year, $14 million agreement to supply various ball bearings to Ford Motor Company (NYSE: F). The Company anticipates shipping approximately $4.5 million against the order in 1998, as shipments are expected to begin May 1, 1998.
General Bearing President David L. Gussack said, "The contract with Ford Motor Company affirms our standing as a premier, low cost, high quality bearing supplier to the U.S. Automotive Industry. General Bearing has created great opportunities for itself and we are continuing to reap the benefits."
Gussack also noted that the Company's contract with General Motors (NYSE: GM) to supply wheel and axle bearings has been delayed several months. He anticipates shipments to begin mid 1999. However, he explained that the new Ford contract plus other new business "means we will continue to see strong top and bottom line growth through 1998. In 1999, that growth will be even more accentuated with the combined new revenue streams from both Ford and General Motors."
"With respect to General Motors," he continued, "It is important to understand that the terms of the contract remain intact and that the delays in the validation process have not been the result of any problems or issues with General Bearing or our product. Rather, the General Motors certification process is a time-consuming series of tests utilized to validate the performance of our bearings. We have been given all assurances by General Motors that it is doing what is necessary to conclude the validation process."