General Bearing Co. (USA; OTC: GNRL) reported results for second quarter 2007, and announced it is restarting a share repurchase program.

For second quarter 2007, ended June 30, GBC reported sales of $32.52 million, up $2.81 million, or 9.4%, from 2006's second quarter sales of $29.71 million.

COGS increased slightly, to $29.98 million, or 73.8% of sales, from $20.76 million, or 69.9% of sales in 2006.

Gross in second quarter dipped to $8.53 million, or 26.2% of sales, from 2006's $8.95 million, or 30.1% of sales.

Operating income was $3.68 million, from $3.92 million in second quarter 2006.

Net income dropped to $1.79 million, or 5.5% of sales, from 2006's $2.04 million, or 6.9% of sales.

Foreign exchange effects continued to help U.S.-based firms, as General Bearing reported a $257,000 gain from foreign exchange in the most recent quarter, up from $60,000 in second quarter 2006.

Founded by Seymour Gussack in 1958, General Bearing is a multinational manufacturer and distributor of ball bearings, tapered, spherical and cylindrical roller bearings, and bearing components. The company has been operating an array of joint ventures in China since 1987, the same year it acquired Hyatt Railway Products in the U.S. out of bankruptcy. Lingering effects of the troubled Hyatt acquisition forced General Bearing into Chapter 11 bankruptcy protection from mid-1991 through 1993; it has since emerged to become one of the strongest long-term performers in the bearing industry. General Bearing went public through an IPO in 1997.

General's markets are manufacturers of automobiles and trucks, trailers, rail equipment, office equipment, general machinery and appliances, as well as the industrial replacement market. Bearings are marketed under The General and Hyatt brands.

Separately, General Bearing just announced it is reactivating a share repurchase program, budgeted at up to $1.0 million. Shares will be acquired in open market and private transactions. At the announced $14.00 range, the program amounts to approximately 71,500 shares or 1.9% of shares outstanding. Markets apparently reacted positively to the program, with shares immediately going to $16.50 before recently topping out near $18.50 before pulling back. By comparison, General Bearing shares languished below $8.00 until just over two years ago.

CEO David Gussack said: "The Board believes that the shares are undervalued and that this provides an excellent opportunity to increase shareholder value as well as creating liquidity for those shareholders who need or wish to sell stock."

The company's position on its own value has been underlined recently by widespread rumors it is in play as a potential acquisition candidate by a varying list of larger manufacturers, both domestic and foreign. Contacted by eBearing, General Bearing declined to comment on those rumors.