General Bearing Corporation Announces New Agreements with Major Automotive and Industrial Companies

Strategic Insights -

General Bearing Corporation (Nasdaq: GNRL) has reached significant agreements with several major companies in the automotive and industrial sectors. The agreements involve the production of driveline components for Ford Motor Company (NYSE: F), as well as contracts with major producers of heavy-duty truck trailers, Trailmobile Corporation and Stoughton Trailers, Inc. Additionally, the company has added Eastman Kodak (NYSE: EK) to its customer base, expanding its presence in the office equipment sector. These agreements demonstrate General Bearing's growing position as a supplier to the automotive industry and its commitment to providing premium-quality products at a low cost.

Key Takeaways:

  • General Bearing Corporation has reached a new one-year, $1.2 million agreement with Ford Motor Company to produce an important driveline component for pick-up trucks, sport utility vehicles, and certain passenger cars.
  • The company has also entered into agreements with Trailmobile Corporation and Stoughton Trailers, Inc. for the supply of tapered roller bearings, with expected revenues of $1.8 million and $1.2 million annually, respectively.
  • General Bearing has added Eastman Kodak to its customer base, increasing its market penetration in the office equipment sector.
  • The company has a two-year, $14 million agreement to supply ball bearings to Ford Motor Company, announced earlier in the year.
  • General Bearing's President, David L. Gussack, stated that the contracts reflect the company's growing position as a supplier to the automotive industry.
  • The company's OEM Division, led by General Manager Alistair Crannis, has secured contracts with four of the nation's top six trailer manufacturers, with tapered roller bearings becoming the standard.
  • General Bearing continues to grow, as evidenced by its record performance in the third quarter, with the company's President remaining confident about its future growth prospects.

Statistics:

  • The new agreement with Ford Motor Company is valued at $1.2 million and is for a period of one year.
  • The contract with Trailmobile Corporation is expected to generate $1.8 million in sales in 1999.
  • The agreement with Stoughton Trailers, Inc. will generate revenue of $1.2 million annually.
  • General Bearing's OEM Division has contracts with four of the nation's top six trailer manufacturers.
  • The company's total revenue from these agreements will amount to $4.8 million ($1.2 million + $1.8 million + $1.2 million + $14 million).

Sources:

  • PRNewswire, January 5
  • Ford Motor Company (NYSE: F)
  • Trailmobile Corporation
  • Stoughton Trailers, Inc.
  • Eastman Kodak (NYSE: EK)
  • General Motors (NYSE: GM)
  • Private Securities litigation Reform Act of 1995