General Bearing Corporation (USA; OTC: GNRL.PK) reported financial results for third quarter 2008, ending September 27, 2008.

Sales in the quarter were $39.2 million, up 22% from third quarter 2007's $32 million.

Like most bearing companies, materials costs have risen to the point where the cost of sales ate into gross margins, with gross profit rising to $8.9 million from 2007's $8.5 million.

With higher SG&A, operating income lagged 2007 slightly, coming in at $3.4 million from 2007's $3.5 million. However, that was offset by income tax credits in the quarter that reversed income tax expense in 2007.

Net income hit $2.2 million in the quarter, up from $1.9 million in third quarter 2007.

General Bearing was hurt somewhat by the weak dollar, reversing $161,000 of positive impact in 2007 to $11,000 negative in 2008. Net comprehensive income then was $2.2 million in 2008, from $2.1 million in 2007.

The company finished the quarter with $7.2 million in cash and equivalents, from $8.1 million at the end of third quarter 2007.

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.