GENERAL BEARING CORPORATION, GNRL ON THE NASDAQ, reported that fourth quarter net income increased 13% to $817,704, or $0.21 per diluted share, from $720,741, or $0.18 per diluted share, recorded for the same period a year ago. Sales for the quarter ended January 2, 1999 rose 21% to $12.7 million, from sales of $10.6 million for the year-earlier period. Fourth quarter 1997 earnings have been restated to exclude the effect of a one-time tax benefit, partially offset by non-recurring plant closing costs.
For the year ended January 2, 1999, net income rose 25% to $2,881,375, or $0.73 per diluted share, from net income of $2,300,829, or $0.59 per diluted share, recorded for the corresponding period one year ago. Sales in 1998 advanced 8% to $45.5 million from $42.2 million in the prior year. 1997 earnings have been restated to exclude the effect of the aforementioned one-time net benefit.
GBC President David L. Gussack said, "Our strong earnings performance exceeded analyst estimates for both the fourth quarter and the full year. During the quarter, we successfully executed our strategic initiatives in the transportation industry. Specifically, our commitment to excellence in both service and engineering has been the driving force behind increased business to the automotive, rail, and heavy-duty truck and trailer industries. As a result of these efforts, we achieved sales of full contract volume of custom bearings to Ford for the fourth quarter and, in November, began shipping our second Ford contract to supply a driveline component."
In January, General Bearing signed two contracts to supply tapered roller bearings to two of the top five heavy duty truck trailer manufacturers in the U.S.--a two year contract with Stoughton Trailers, Inc. that is slated to generate sales of $1.2 million annually, and a five-year contract with Trailmobile Corp. that is expected to produce $1.8 million in revenue this year." General Bearing is now the #1 supplier of tapered roller bearings to the U.S. heavy duty truck-trailer market. In addition, we are making new inroads into the tapered journal bearing markets as a result of our recently earned 'Unconditional Approval' from the Association of American Railroads," said Gussack.