WEST NYACK, NY -- January 5, 1999--General Bearing Corporation (Nasdaq:GNRL) today announced that it reached a new, one-year, $1.2 million agreement with the Ford Motor Company (NYSE:F). General will produce an important driveline component for pick-up trucks, sport utility vehicles and certain passenger cars. The commitment represents General Bearing's second arrangement with the automobile manufacturer and the addition of another component part to General's product offering. Earlier in the year, General Bearing announced a two-year, $14 million agreement to supply ball bearings to Ford.
General Bearing President David L. Gussack said, "This contract reflects our growing position as a supplier to the automotive industry. Our continued success in this sector validates General Bearing's strategy of leveraging our strong relationships within the supply chain to offer a premium-quality, highly-engineered product at a low cost."
The Company also announced today that it has reached agreements with two major producers of heavy duty truck trailers. A five-year contract with Trailmobile Corporation, the fourth largest trailer manufacturer in the nation, is expected to generate $1.8 million of sales in 1999 and a two-year contract with Stoughton Trailers, Inc., the fifth largest trailer manufacturer, is slated to generate revenue of $1.2 million annually. Alistair Crannis, General Manager of the OEM Division of General Bearing, said, "General's tapered roller bearings are now the standard at four of the nation's top six trailer manufacturers. These new contracts bolster our position as the number one supplier of tapered roller bearings to the U.S. trailer market."
Additionally, the Company announced today that it has added Eastman Kodak (NYSE:EK) to it's customer base, increasing its market penetration within the office equipment sector.
Commenting on the Company's contract to supply wheel and axle bearings to General Motors (NYSE:GM), Gussack noted, "We are now half way through the validation process and are awaiting GM's completion of the balance of the testing. We are encouraged with our progress thus far, although it is difficult to gauge GM's completion date. Therefore, we are unable to forecast initial shipment dates.
General Bearing continues to grow, as evidenced by our record performance in the third quarter. Despite the slow pace of the GM validation process, we remain extremely confident about our future growth."
General Bearing manufactures, sources, assembles and distributes a variety of bearing components and products. The Company manufactures ball bearings, tapered roller bearings, spherical roller bearings and cylindrical roller bearings. Under "The General" and the "Hyatt" trademarks, the Company supplies Original Equipment Manufacturers (OEMs) in the automobile, truck/trailer, railcar, office equipment, machinery and appliance industries, as well as the Industrial Aftermarket.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products, product demand and market acceptance risks, reliance on key strategic alliances, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks could cause the Company's actual results for the current FY and beyond to differ materially from those expressed in any forward looking statements made by, or on behalf of, the company.