General Bearing Corporation Releases Results for the Third Quarter

WEST NYACK, N.Y. — General Bearing Corporation (OTC: GNRL.PK) announced today that the Company has released the attached unaudited condensed consolidated financial statements for the thirty – nine weeks ending October 3, 2009. The aforementioned interim financial statements are also available on the Company’s website at www.generalbearing.com.

General Bearing manufactures ball bearings, tapered roller bearings, spherical roller bearings, and cylindrical roller bearings, and bearing components. Under “The General” and the “Hyatt” trademarks, the Company supplies original equipment manufacturers in the automobile, truck/trailer, railcar, office equipment, machinery and appliance industries, as well as the industrial aftermarket.

GENERAL BEARING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands, except for shares)

	October 3,			January 3,
	2009			2009
ASSETS	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	9,080		$	8,643
Due from bank		-			4,338
Loan receivable - related party		44			70
Accounts receivable, net of allowance for doubtful accounts of $1,010 in 2009 and $999 in 2008		25,543			23,125
Inventories		31,849			44,126
Prepaid taxes and taxes recoverable		850			1,340
Prepaid expenses and other current assets		4,217			2,808
Deferred tax assets		1,653			1,399
Total current assets		73,236			85,849
PROPERTY, PLANT AND EQUIPMENT		38,765			40,526
INVESTMENT IN, ADVANCES TO AND ACCOUNTS RECEIVABLE FROM JOINT VENTURES AND AFFILIATES		3,384			1,837
LOAN RECEIVABLE - RELATED PARTY		1,330			1,320
DEFERRED TAX ASSETS		354			354
OTHER ASSETS		150			214
Total assets	$	117,219		$	130,100

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable - banks	$	22,648		$	28,636
Notes payable - related party		-			5,125
Accounts payable		10,703			14,263
Due to affiliates		778			1,321
Accrued expenses and other current liabilities		3,973			6,203
Current portion of long-term debt		-			36
Total current liabilities		38,102			55,584
LONG-TERM DEBT		8,053			3,660
OTHER LIABILITIES		163			187
DEFERRED TAXES		144			144
Total liabilities		46,462			59,575

COMMITMENTS AND CONTINGENCIES
GENERAL BEARING CORPORATION STOCKHOLDERS' EQUITY:
Common shares - par value $.01 per share; authorized 5,000,000 shares; 4,174,450 issued and outstanding in 2009 and 2008		42			42
Paid-in capital		38,408			38,423
Accumulated other comprehensive income		3,163			3,163
Treasury stock, at cost; 542,817 and 561,817 shares		(4,981	)		(5,159	)
Retained earnings		12,961			12,828
Total General Bearing Corporation stockholders' equity		49,593			49,297
NONCONTROLLING INTERESTS		21,164			21,228
Total stockholders' equity		70,757			70,525
Total liabilities and stockholders' equity	$	117,219		$	130,100


GENERAL BEARING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (In Thousands, Except for Shares and Per Share Data) (Unaudited)

	Thirty nine Weeks Ended					Thirteen Weeks Ended
	Oct. 3,			Sept. 27,		Oct. 3,			Sept. 27,
	2009			2008		2009			2008

SALES	$	70,771		$	108,483	$	29,453		$	39,236
COST OF SALES		59,302			82,532		24,853			30,304
GROSS PROFIT		11,469			25,951		4,600			8,932

SELLING, GENERAL AND ADMINISTRATIVE EXP.		12,284			15,857		4,249			5,488
OPERATING INCOME / (LOSS)		(815	)		10,094		351			3,444

OTHER EXPENSES / (INCOME), NET		(693	)		2,659		556			938
INCOME / (LOSS) BEFORE INCOME TAXES		(122	)		7,435		(205	)		2,506

INCOME TAX EXPENSE / (BENEFIT)		(183	)		1,429		(114	)		(296	)

NET INCOME / (LOSS)		61			6,006		(91	)		2,802

Less: Net income / (loss) attributable to the noncontrolling interests		(72	)		1,062		(132	)		591

NET INCOME ATTRIBUTABLE TO GENERAL BEARING CORPORATION	$	133		$	4,944	$	41		$	2,211


Other Comprehensive Income / (Loss)
Net income / (Loss)	$	61		$	6,006	$	(91	)	$	2,802
Foreign exchange translation		-			2,407		1			(29	)
Total comprehensive income / (loss)		61			8,413		(90	)		2,773

Comprehensive income / (loss) attributable to the noncontrolling interests		(72	)		2,214		(132	)		573
Comprehensive income attributable to General Bearing Corporation	$	133		$	6,199	$	42		$	2,200

Net Income per common share
Basic	$	0.04		$	1.34	$	0.01		$	0.61
Diluted	$	0.04		$	1.31	$	0.01		$	0.59

Weighted average number of common shares
Basic		3,630,769			3,681,275		3,631,633			3,641,948
Diluted		3,692,918			3,786,459		3,696,448			3,735,078


GENERAL BEARING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited)

	Thirty nine weeks ended
	October 3, 2009			Sept. 27, 2008

OPERATING ACTIVITIES
Net income	$	133		$	4,944
Adjustments to reconcile net income to net cash provided by operating activities:
Noncontrolling interests		(72	)		1,062
Depreciation and amortization		3,445			3,445
Deferred income taxes		(254	)		(141	)
Equity (earnings) / losses in joint ventures and affiliates		53			(90	)
Loss / (Gain) on sale of fixed assets		101			(36	)
Stock based compensation		20			50
Other non cash charges and credits, net		(13	)		49
Changes in:
Accounts receivable		(2,419	)		(5,646	)
Inventories		12,278			(2,881	)
Due from bank		4,338			(779	)
Prepaid expenses and other assets		(935	)		(692	)
Advances to affiliates		(545	)		378
Accounts payable and accrued expenses		(5,633	)		2,601
Net cash provided by operating activities		10,497			2,264

INVESTING ACTIVITIES
Investment in affiliates		(1,600	)		(105	)
Repayment of loan - related party		20			50
Fixed asset purchases		(1,712	)		(3,706	)
Proceeds from sale of fixed assets		3			55
Net cash used in investing activities		(3,289	)		(3,706	)

FINANCING ACTIVITIES
Increase / (decrease) in note payable - banks		(10,091	)		3,106
Increase / (decrease) in note payable - related party		(732	)		51
Decrease in note payable - other		(36	)		(47	)
Increase / (decrease) in revolving credit facility		4,103			(2,200	)
Proceeds from partner contributions in a joint venture		-			2,750
Dividends paid to stockholders		-			(1,460	)
Purchase of employee stock options		-			(1,403	)
Proceeds from the exercise of common stock options		-			35
Purchase of treasury stock		(15	)		(1,793	)
Net cash used in financing activities		(6,771	)		(961	)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS		437			(2,403	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		-			(371	)
CASH AND CASH EQUIVALENTS, Beginning of Period		8,643			9,955
CASH AND CASH EQUIVALENTS, End of Period	$	9,080		$	7,181