UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM 10-Q

    (Mark One)

        |X|   Quarterly Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                       For the quarter ended June 28, 2003
                                       OR
          |_| Transition Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

    For the transition period from .................. to ....................

                         Commission file Number 0-22053

                           GENERAL BEARING CORPORATION
                           ---------------------------
             (Exact name of registrant as specified in its charter)

                Delaware                                    13-2796245
                --------                                    ----------
   (State or other jurisdiction of                       (I.R.S. Employer
    incorporation or organization)                      Identification No.)

  44 High Street, West Nyack, New York                         10994
  ------------------------------------                         -----
(Address of principal executive offices)                     (Zip Code)

       Registrant's telephone number, including area code: (845) 358-6000

        Securities registered pursuant to Section 12(b) of the Act: NONE

           Securities registered pursuant to Section 12(g) of the Act:

                      Common Stock $.01 par value per share
                      -------------------------------------
                                (Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. |X| Yes |_| No

Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Securities Exchange Act of 1934). |_| Yes |X| No

At August 1, 2003, the Registrant had issued 7,114,200 shares of common stock,
$.01 par value per share, and had outstanding 3,840,204 shares.

<PAGE>

          CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION
               FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE
                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.

      The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements, which are statements other than those of
historical fact, including, without limitation, ones identified by the use of
the words: "anticipates," "estimates," "believes," "expects," "intends,"
"plans," "predicts," and similar expressions. In this Quarterly Report such
statements may relate, among other things, to the recoverability of deferred
taxes, likely industry trends, the continued availability of credit lines, the
suitability of facilities, access to suppliers and implementation of joint
ventures and marketing programs. Such forward looking statements involve
important risks and uncertainties that could cause actual results to differ
materially from those expected by the Company, and such statements should be
read along with the cautionary statements accompanying them and mindful of the
following additional risks and uncertainties possibly affecting the Company: the
possibility of a general economic downturn, which is likely to have an important
impact on historically cyclical industries such as manufacturing; significant
price, quality or marketing efforts from domestic or overseas competitors; the
loss of, or substantial reduction in, orders from a major customer; the loss of,
or failure to attain additional quality certifications; changes in U.S. or
foreign government regulations and policies, including the imposition of
antidumping orders on the Company or any of its suppliers; a significant
judgment or order against the Company in a legal or administrative proceeding;
and potential delays in implementing planned sales and marketing expansion
efforts and the failure of their effectiveness upon implementation.

<PAGE>

                           GENERAL BEARING CORPORATION

                          QUARTERLY REPORT ON FORM 10-Q
                       FOR THE QUARTER ENDED JUNE 28, 2003

                                TABLE OF CONTENTS

                                                                        Page No.
                                                                        --------
PART I

   Item 1.  Financial Statements ....................................... 2 - 8

   Item 2.  Management's Discussion and Analysis of Results of
            Operations and Financial Condition ......................... 9 - 13

   Item 3.  Quantitative and Qualitative Disclosure about Market Risk... 14 - 15

   Item 4.  Controls and Procedures..................................... 15

PART II

   Item 1.  Legal Proceedings .......................................... 16

   Item 6.  Exhibits and Reports on Form 8-K ........................... 16

Signature .............................................................. 17

Certifications ......................................................... 18 - 20


                                                                               1
<PAGE>

                             FINANCIAL STATEMENTS OF
                           GENERAL BEARING CORPORATION
                                AND SUBSIDIARIES

Item 1.                    CONSOLIDATED BALANCE SHEETS
              (In Thousands - Except for Shares and Per Share Data)

<TABLE>
<CAPTION>
                                                              June 28,     Dec. 28,
                                                                2003         2002
                                                              --------     --------
                              ASSETS                         (Unaudited)
<S>                                                           <C>          <C>
Current:
    Cash and cash equivalents                                 $  2,948     $  3,158
    Accounts receivable - net of allowance for doubtful
       accounts of $290 and $335                                11,809       10,742
    Inventories                                                 25,718       28,218
    Prepaid expenses and other current assets                    5,157        4,368
    Advances to affiliates                                         100          186
    Deferred tax assets                                          2,427        2,427
    Assets held for sale                                         8,245        7,578
                                                              --------     --------

       Total current assets                                     56,404       56,677

Fixed assets, net                                               21,675       21,308
Investment in and advances to joint ventures
    and affiliates                                               4,060        3,670
Other assets                                                     1,446        1,336
                                                              --------     --------

Total Assets                                                  $ 83,585     $ 82,991
                                                              ========     ========

       LIABILITIES AND STOCKHOLDERS' EQUITY
Current:
    Bank - revolving line of credit                             14,041       14,458
    Notes payable - banks                                        8,756        7,114
    Accounts payable:
       Trade                                                     5,244        7,127
       Affiliates                                                  438        1,696
    Accrued expenses and other current liabilities               6,680        4,107
    Current maturities of long-term debt                           392          396
    Liabilities held for sale                                    8,245        7,578
                                                              --------     --------

          Total current liabilities                             43,796       42,476
                                                              --------     --------

Long-term debt, net of current maturities                        6,799        8,563

Other long-term liabilities - affiliate                            222          315

Deferred taxes                                                     714          714

Minority interests                                               8,974        9,464

Commitments and contingencies

Stockholders' equity:
    Preferred stock par value $.01 per share - 1,000,000
       shares authorized, none issued and outstanding               --           --
    Common stock par value $.01 per share - 19,000,000
       shares authorized, 7,114,200 and 7,102,200
       shares issued and outstanding                                71           71
    Additional paid-in capital                                  40,166       40,133
    Accumulated other comprehensive loss                        (1,063)      (1,084)
    Treasury stock at cost, 3,245,296 and 3,234,820 shares      (1,030)        (996)
    Accumulated deficit                                        (15,064)     (16,665)
                                                              --------     --------

          Total stockholders' equity                            23,080       21,459
                                                              --------     --------

Total liabilities and stockholder's equity                    $ 83,585     $ 82,991
                                                              ========     ========
</TABLE>

      See accompanying notes to condensed consolidated financial statements


                                                                               2
<PAGE>

                             FINANCIAL STATEMENTS OF
                           GENERAL BEARING CORPORATION
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
              (In Thousands - Except for Shares and Per Share Data)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                   Twenty-six weeks ended           Thirteen weeks ended
                                                ---------------------------     ---------------------------
                                                  June 28,        June 29,        June 28,        June 29,
                                                    2003            2002            2003            2002
                                                -----------     -----------     -----------     -----------
<S>                                             <C>             <C>             <C>             <C>
Sales                                           $    32,273     $    30,512     $    16,085     $    15,136
Cost of sales                                        22,426          21,571          11,219          10,678
                                                -----------     -----------     -----------     -----------
Gross profit                                          9,847           8,941           4,866           4,458
Selling, general and administrative expenses          6,332           5,859           3,247           3,041
                                                -----------     -----------     -----------     -----------
Operating income                                      3,515           3,082           1,619           1,417
Other expense, net                                      336             815             276             363
                                                -----------     -----------     -----------     -----------
Income from continuing operations before
income taxes                                          3,179           2,267           1,343           1,054
Income taxes                                          1,099             538             551             267
                                                -----------     -----------     -----------     -----------
Income from continuing operations before
minority interests                                    2,080           1,729             792             787
Minority interests                                      456             459             258             228
                                                -----------     -----------     -----------     -----------
Income from continuing operations                     1,624           1,270             534             559
                                                -----------     -----------     -----------     -----------

Loss from discontinued operations                       (37)           (154)             (3)           (333)
Income (taxes) / benefit                                 13             (53)             --             (19)
                                                -----------     -----------     -----------     -----------
Loss from discontinued operations                       (24)           (207)             (3)           (352)
                                                -----------     -----------     -----------     -----------
Net income                                      $     1,600     $     1,063     $       531     $       207
                                                ===========     ===========     ===========     ===========
Income per common share from continuing
operations:
         Basic                                  $      0.42     $      0.32     $      0.14     $      0.14
                                                -----------     -----------     -----------     -----------
         Diluted                                $      0.42     $      0.32     $      0.14     $      0.14
                                                -----------     -----------     -----------     -----------
Loss per common share from
discountinued operations:
         Basic                                  $     (0.01)    $     (0.05)    $     (0.00)    $     (0.09)
                                                -----------     -----------     -----------     -----------
         Diluted                                $     (0.01)    $     (0.05)    $     (0.00)    $     (0.09)
                                                -----------     -----------     -----------     -----------
Income per common share from net income:
         Basic                                  $      0.41     $      0.27     $      0.14     $      0.05
                                                -----------     -----------     -----------     -----------
         Diluted                                $      0.41     $      0.27     $      0.14     $      0.05
                                                -----------     -----------     -----------     -----------

Weighted average number of common shares:
         Basic                                    3,865,547       4,001,759       3,870,346       3,968,036
                                                -----------     -----------     -----------     -----------
         Diluted                                  3,866,579       4,010,854       3,872,665       3,983,859
                                                -----------     -----------     -----------     -----------
</TABLE>

      See accompanying notes to condensed consolidated financial statements


                                                                               3
<PAGE>

                             FINANCIAL STATEMENTS OF
                           GENERAL BEARING CORPORATION
                                AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          Twenty-six weeks ended    Thirteen weeks ended
                                          ----------------------    ---------------------
                                           June 28,    June 29,     June 28,     June 29,
                                             2003        2002         2003         2002
                                           --------    --------     --------     --------
<S>                                        <C>         <C>          <C>          <C>
Net income                                 $  1,600    $  1,063     $    531     $    207
Derivative fair market value adjustment          20         (99)         (24)        (193)
                                           --------    --------     --------     --------
Comprehensive income                       $  1,620    $    964     $    507     $     14
                                           ========    ========     ========     ========
</TABLE>

      See accompanying notes to condensed consolidated financial statements


                                                                               4
<PAGE>

                             FINANCIAL STATEMENTS OF
                           GENERAL BEARING CORPORATION
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                   Twenty-six weeks ended
                                                              --------------------------------
                                                              June 28, 2003      June 29, 2002
                                                              -------------      -------------
<S>                                                               <C>               <C>
Cash flows from operating activities:
        Net income                                                $ 1,600           $ 1,063
    Adjustments to reconcile net income to cash provided
      by operating activities:
        Minority interests                                           (491)               66
        Depreciation and amortization                               1,181               925
        Deferred income taxes                                          --               (26)
        Equity in income of joint ventures and affiliates            (185)              (68)
        Other non-cash items charged to income                         34                34
        (Gain) / loss on sales of fixed assets                         --                (4)
    Changes in:
        Accounts receivable                                        (1,067)              209
        Inventories                                                 2,250             1,534
        Prepaid expenses and other assets                            (340)             (859)
        Due from affiliates                                        (1,705)             (266)
        Accounts payable and accrued expenses                         709              (871)
                                                                  -------           -------

           Net cash provided by operating activities                1,986             1,737
                                                                  -------           -------

Cash flows from investing activities:
    Investment in affiliate                                          (281)             (101)
    Fixed asset purchases                                          (1,856)             (901)
    Net proceeds from sale of fixed assets                             --                10
                                                                  -------           -------

           Net cash used in investing activities                   (2,137)             (992)
                                                                  -------           -------

Cash flows from financing activities:
    Purchase of treasury stock                                        (33)             (628)
    Net proceeds from note payable - banks                            495             1,089
    Repayment of other long-term debt                                (104)              (52)
    Net proceeds from (repayment of) revolving credit facility       (417)              215
                                                                  -------           -------

         Net cash provided by (used in) financing activities          (59)              624
                                                                  -------           -------

Net increase (decrease) in cash and cash equivalents                 (210)            1,369
Cash and cash equivalents, beginning of period                      3,158             1,847
                                                                  -------           -------
Cash and cash equivalents, end of period                          $ 2,948           $ 3,216
                                                                  =======           =======
Cash paid during the period for:
    Interest                                                      $   762           $   806
                                                                  =======           =======
    Income taxes                                                  $   250           $    72
                                                                  =======           =======
</TABLE>

      See accompanying notes to condensed consolidated financial statements


                                                                               5
<PAGE>

                           GENERAL BEARING CORPORATION
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Basis of           The accompanying unaudited condensed consolidated
     Presentation       financial statements for General Bearing Corporation and
                        subsidiaries ("the Company") have been prepared in
                        accordance with generally accepted accounting principles
                        for interim financial information and with the
                        instructions to Form 10-Q and Regulation S-X.
                        Accordingly, they do not include all of the information
                        and footnotes required by generally accepted accounting
                        principles for complete financial statements. In the
                        opinion of management, all adjustments (consisting
                        solely of normal recurring accruals) considered
                        necessary for a fair presentation have been included.
                        Operating results for the twenty-six weeks ended June
                        28, 2003 are not necessarily indicative of the results
                        that may be expected for the year ending December 27,
                        2003. For further information, refer to the consolidated
                        financial statements and footnotes thereto included in
                        the Company's Annual Report on Form 10-K for the year
                        ended December 28, 2002.

2.   Discontinued       In December 2002, the Company's Board of Directors and
     Operations         management resolved to discontinue the operations of the
                        machine tool segment by disposing of the net assets by
                        sale during 2003. In accordance with Statement of
                        Financial Accounting Standards No. 144, "Accounting for
                        the Impairment or Disposal of Long Lived Assets", prior
                        year statements of operations of the Company have been
                        reclassified to segregate discontinued operations from
                        continuing operations. A detail of the major classes of
                        the assets and liabilities of the discontinued
                        operations is as follows: (In thousands)

<TABLE>
<CAPTION>
                                                                       June 28,  December 28,
                                                                         2003        2002
                                                                       --------  ------------
<S>                                                                     <C>         <C>
                        Assets:

                        Cash                                            $  482      $   52
                        Accounts receivable                                696       1,475
                        Inventory                                        3,729       3,394
                        Prepaid expenses & other current assets            783         360
                        Deferred taxes                                      18          --
                        Fixed assets                                     2,537       2,297
                                                                        ------      ------

                        Total assets                                    $8,245      $7,578
                                                                        ======      ======

                        Liabilities:
                        Accounts payable                                $2,280      $1,866
                        Accrued expenses & other current liabilities     2,940       1,998
                        Notes payable - bank                             2,232       2,369
                        Current maturities of long-term debt                 6          11
                        Minority interest                                  787       1,334
                                                                        ------      ------

                        Total liabilities                               $8,245      $7,578
                                                                        ======      ======
</TABLE>


                                                                               6
<PAGE>

                          GENERAL BEARING CORPORATION
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3.   Inventories        Inventories consist of the following: (In Thousands)

<TABLE>
<CAPTION>
                                                            June 28, 2003  December 28, 2002
                        --------------------------------------------------------------------
<S>                                                            <C>              <C>
                        Finished bearings                      $ 9,891          $ 9,686

                        Bearing raw materials, purchased
                        parts and work in process               15,827           18,532
                        --------------------------------------------------------------------
                                                               $25,718          $28,218
                        ====================================================================
</TABLE>

4.   Earnings per       Basic earnings per share includes no dilution and is
     Share              computed by dividing net income by the weighted average
                        number of common shares outstanding for the period.
                        Diluted earnings per share reflect, in periods in which
                        they have a dilutive effect, the dilution which would
                        occur upon the exercise of stock options. A
                        reconciliation of the shares used in calculating basic
                        and diluted earnings per share follows:

<TABLE>
<CAPTION>
                                                                Twenty-six Weeks Ended
                                                             ------------------------------
                                                             June 28, 2003    June 29, 2002
                        -------------------------------------------------------------------
<S>                                                            <C>              <C>
                        Diluted earnings per share
                        computation:

                        Basic weighted average common
                        shares outstanding                     3,865,547        4,001,759

                        Incremental shares from assumed
                        exercise of dilutive options               1,032            9,095
                        -------------------------------------------------------------------
                                                               3,866,579        4,010,854
                        ===================================================================

<CAPTION>
                                                                   Thirteen Weeks Ended
                                                             ------------------------------
                                                             June 28, 2003    June 29, 2002
                        -------------------------------------------------------------------
<S>                                                            <C>              <C>
                        Diluted earnings per share
                        computation:

                        Basic weighted average common
                        shares outstanding                     3,870,346        3,968,036

                        Incremental shares from assumed
                        exercise of dilutive options               2,319           15,823
                        -------------------------------------------------------------------
                                                               3,872,665        3,983,859
                        ===================================================================
</TABLE>


                                                                               7
<PAGE>

                           GENERAL BEARING CORPORATION
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                        For the twenty-six weeks ended June 28, 2003 and June
                        29, 2002, 245,800 and 287,800 options and warrants
                        outstanding, respectively, were anti-dilutive. For the
                        thirteen weeks ended June 28, 2003 and June 29, 2002,
                        245,800 and 197,800 options and warrants outstanding,
                        respectively, were anti-dilutive.

5.   Derivative         The Company follows Statement of Financial Accounting
     Financial          Standards No. 133 ("SFAS 133") "Accounting for
     Instruments        Derivative Instruments and Hedging Activities", as
                        amended, and interpreted, which requires that all
                        derivative instruments be recorded on the balance sheet
                        at their fair value.

                        In order to manage it's exposure to changes in interest
                        rates, the Company has entered into an interest rate
                        swap agreement to hedge a portion of its total debt that
                        is subject to variable interest rates. These contracts
                        are considered to be a hedge against changes in the
                        amount of future cash flows associated with the interest
                        payments on variable rate debt obligations. For the
                        twenty-six weeks ended June 28, 2003 and June 29, 2002,
                        expenses recognized in earnings relating to the interest
                        rate swap totaled $207,000 and $213,000, respectively
                        and are included in the Statement of Operations in Other
                        expenses, net. Any amounts reported in Comprehensive
                        Income will be reclassified to earnings over the term of
                        the agreement, through 2007.

6.   Litigation         Except as explained in Part II of this report, there has
                        been no material change in litigation since the events
                        reported in the Company's 10-Q for the fiscal quarter
                        ended March 29, 2003.


                                                                               8
<PAGE>

Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition

Business Overview

General Bearing Corporation and subsidiaries (collectively, the "Company")
operates in two business segments: Bearings ("Continuing Operations") and
Machine Tools ("Discontinued Operations"). In December 2002, the Company's Board
of Directors and management resolved to discontinue the operations of the
machine tool segment by disposing of the net assets by sale during 2003. During
2002, the Company reduced the net carrying amounts of machine tools assets and
liabilities to zero and recorded an impairment write-down associated with
discontinued operations of approximately $2,242,000. Pursuant to Statement of
Financial Accounting Standards No. 144, the financial statements of the Company
have been reclassified to segregate discontinued operations from continuing
operations.

Continuing Operations

The Company manufactures and distributes a variety of bearings and bearing
components under the Hyatt(R) and The General(R) trademarks. The Company
supplies original equipment manufacturers ("OEMs") and distributors. The
Company's products, sold principally in the United States ("U.S.") and Asia, are
used in a broad range of applications, including automobiles, railroad cars,
locomotives, trucks, heavy duty trailers, office equipment, machinery and
appliances. General has entered into six joint ventures (5 with manufacturers in
the Peoples Republic of China ("PRC")) to enable it to manufacture high quality,
low cost bearings and bearing components. General obtains a majority of its
bearing and component requirements from its manufacturing plants in the PRC.

Results of Operations

      Sales. Sales for the second fiscal quarter ended June 28, 2003 ("Q-2
2003") of $16,085,000 represents a 6.3% increase compared to the second fiscal
quarter ended June 29, 2002 ("Q-2 2002"). Increased sales of tapered roller
bearings for heavy duty truck trailers, and drive line components to the
automotive industry were partially offset by lower sales volume to distributors.
The reduction in sales to distributors is believed to be related to the general
downturn in the U.S. economy.

      Sales for the twenty-six weeks ended June 28, 2003 ("2003") of $32,273,000
represents a 5.8% increase compared to the twenty-six weeks ended June 29, 2002
("2002"). Increased sales of drive line components to the automotive industry,
tapered roller bearings for heavy duty truck trailers and tapered journal
bearings to the railroad industry were partially offset by lower sales volume in
the heavy duty aftermarket as well as lower sales volume to distributors. The
reductions in sales to the heavy duty aftermarket and distributors are believed
to be related to the general downturn in the U.S. economy.

      Gross Profit. Gross profit for Q-2 2003 of $4,866,000 represents a 9.2%
increase compared to Q-2 2002. As a percentage of sales, gross profit (GP%) was
30.3% for Q-2 2003 compared to 29.5% for Q-2 2002. This increase was mainly due
to product mix and the increased sales volume.


                                                                               9
<PAGE>

      Gross profit for 2003 of $9,847,000 represents a 10.1% increase compared
to 2002. As a percentage of sales, GP% was 30.5% for 2003 compared to 29.3% for
2002. This increase was mainly due to product mix and the increased sales
volume.

      Selling, General and Administrative Expenses. Selling, general and
administrative expenses (S,G&A) as a percentage of sales were 20.2% in Q-2 2003
compared to 20.1% in Q-2 2002. S,G&A increased by $206,000 mainly due to
increases in salaries, depreciation and higher sales related variable costs,
partially offset by reduced promotion, professional fees and telephone expenses.

      S,G&A as a percentage of sales were 19.6% in 2003 compared to 19.2% in
2002. S,G&A increased by $473,000 mainly due to increases in salaries,
insurance, professional fees, depreciation and higher sales related variable
costs, partially offset by reduced promotion, travel, and telephone expenses.

      Operating Income. Operating income for Q-2 2003 of $1,619,000 represents a
14.3% increase compared to Q-2 2002 due to higher sales volume and higher GP%,
partially offset by higher S,G&A.

      Operating income for 2003 of $3,515,000 represents an 14.0% increase
compared to 2002 due to higher sales volume and higher GP%, partially offset by
higher S,G&A.

      Other Expense, net. Other expense, net was $276,000 in Q-2 2003 compared
to $363,000 in Q-2 2002 and is comprised of miscellaneous non-operating income
and expenses, interest expense and equity in income of affiliates ("equity
income") as follows: (In thousands)

                                                               Second Quarter
                                                             2003          2002
                                                            -------------------

Other non-operating (income) expenses, net                  $ (35)        $  18
Interest expense, net                                         392           391
Equity (income) in affiliates                                 (81)          (46)
                                                            -----         -----
                                                            $ 276         $ 363

      Other expense, net was $336,000 in 2003 compared to $815,000 in 2002 as
follows: (in thousands)

                                                                 Six Months
                                                             2003          2002
                                                            -------------------

Other non-operating (income) expenses, net                  $ (41)        $  55
Interest expense, net                                         562           828
Equity (income) in affiliates                                (185)          (68)
                                                            -----         -----
                                                            $ 336         $ 815

Pursuant to requirements imposed in 1993 by the United States Office of Foreign
Assets Control ("OFAC"), at the end of 2002 the Company carried a net payable
("IKL payable") to General IKL Corp., an affiliate. The requirement arose out of
sanctions imposed by the U.S. government on the countries comprising the former
Republic of Yugoslavia, "freezing" certain assets in the United States. In
February 2003, OFAC "unfroze" assets affected by the sanctions and the


                                                                              10
<PAGE>

Company reduced a significant portion of the IKL payable which the Company
disputed resulting in a $238,000 reduction in interest expense.

      Income Tax. The Company's effective income tax rate was 41.0% in Q-2 2003
compared to 25.3% in Q-2 2002. The Q-2 2002 rate is reflective of income taxes
not being provided for on certain foreign income that was originally intended to
be permanently reinvested. The Company's effective income tax rate was 34.6% in
2003 compared to 23.7% in 2002. The 2003 effective tax rate reflects a normal
rate of taxation. The 2002 effective tax rate is reflective of income taxes not
being provided for on certain foreign income that was originally intended to be
permanently reinvested.

      Discontinued Operations. In the Machine Tools segment, the Company
produces and distributes a variety of machine tools used for boring, turning,
milling and grinding metal work pieces. The Company's product lines include
horizontal boring mills, bridge and gantry mills, vertical turning lathes, heavy
duty lathes, roll grinders, belt grinders and vertical grinders. Machine tool
sales of $1,514,000 in Q-2 2003 were 30.7% higher than Q-2 2002 primarily due to
larger, higher priced machines sold in the United States. GP% for machine tools
was 19.2% in Q-2 2003 compared to 39.6% in Q-2 2002. Q-2 2003 gross profit
includes a $153,000 charge to increase inventory reserves. S,G&A for machine
tools decreased by $175,000 in Q-2 2003 compared to Q-2 2002 due to reductions
in miscellaneous taxes, professional fees and bad debt expense. Operating loss
in Q-2 2003 for machine tools was $546,000 compared to an operating loss of
$553,000 in Q-2 2002 due to higher sales and reduced S,G&A, partially offset by
reduced GP%. Other income, net was $240,000 in Q-2 2003 compared to other
expense, net of $160,000 in Q-2 2002. The increase in other income, net in Q-2
2003 is primarily due to the recognition of a $370,000 gain on the sale of land.
The net loss for machine tools was $188,000 in Q-2 2003 compared to a net loss
of $352,000 in Q-2 2002 mainly due to higher sales, reduced S,G&A expenses, and
the gain recognized from the sale of land, partially offset by reduced GP%.

      Machine tool sales of $2,871,000 in 2003 were 25.0% lower than 2002 due to
softness in the machine tool industry. GP% for machine tools was 8.1% in 2003
compared to 38.2% in 2002 mainly due to lower sales volume, an increase in
inventory reserves and product mix. S,G&A for machine tools increased by $21,000
in 2003 compared to 2002 mainly due to an increase in insurance expense.
Operating loss for machine tools was $1,572,000 in 2003 compared to an operating
loss of $321,000 in 2002 primarily due to lower sales volume and lower GP%.
Other income, net was $242,000 in 2003 compared to other expense, net of
$225,000 in 2002. The increase in other income, net in 2003 is mainly due to
income generated from the sale of land. The net loss for machine tools was
$714,000 in 2003 compared to a net loss of $206,000 in 2002 mainly due to
reduced sales and lower GP%, partially offset by the gain recognized from the
sale of land.

      Net Income. Net income for Q-2 2003 increased by 156.5% to $531,000 or
$.14 per basic and diluted share, from $207,000 or $.05 per basic and diluted
share in Q-2 2002. The increase is primarily due to the higher sales volume and
lower other expenses, partially offset by higher S,G&A and an increase in the
effective tax rate. Also, the Company recognized smaller losses in discontinued
operations in Q-2 2003 due to the Company reducing the carrying amounts of
machine tool assets and liabilities to zero and recording an impairment
write-down in December 2002. Net income for 2003 increased 50.5% from 2002 to
$1,600,000 or $.41 per basic and diluted share, from $1,063,000 or $.27 per
basic and diluted share in 2002 mainly due to the factors affecting the
quarterly net income.


                                                                              11
<PAGE>

Financial Condition, Liquidity and Capital Resources

      During the periods presented, the Company's primary sources of capital
have been short term loans and a revolving credit facility that expires on
September 30, 2003 ("Revolving Credit Facility"). At June 28, 2003 and December
28, 2002, the Company had working capital of $12,608,000 and $14,201,000,
respectively. The Company expects to enter into a new Revolving Credit Facility
prior to its expiration.

      Cash provided by operating activities in 2003 was $1,986,000. Cash
provided by net income before depreciation and amortization, inventory
reductions, and higher accounts payable and accrued expenses was partially
offset by increased accounts receivable and due from affiliates.

      Cash used in investing activities in 2003 was $2,137,000. The Company
invested $281,000 in Shanghai General Bearing Company, Ltd., one of it's
existing unconsolidated joint ventures in China. Cash used in investing
activities in 2003 also includes $1,856,000 for capital expenditures compared to
$901,000 in 2002. The increase in capital expenditures is primarily related to
machinery purchased to support the growth of Jiangsu General Ball and Roller
Company, Ltd., a 51% owned subsidiary.

      Cash used in financing activities in 2003 was $59,000. During 2003, net
decreases in debt under its Revolving Credit Facility of $417,000, stock
repurchases of $33,000 under the Company's Stock Repurchase Program ("the
Program"), and $104,000 in payments under its capital lease facility were
partially offset by a $495,000 increase in Notes Payable - Banks. The majority
of the increase in Notes Payable - Banks was used to finance capital equipment
purchases.

      At June 28, 2003, the Company had outstanding debt of $14,041,000 under
its Revolving Credit Facility and had further availability of approximately $6.6
million. The Company expects to enter into a new Revolving Credit Facility prior
to its expiration. The Company is in compliance with all of its loan covenants.

      During 2003, the Company repurchased 10,476 shares of its common stock for
a cost of $33,000 under its Program. The Company has purchased 295,296 shares
for a cost of $1,030,000 since the inception of the Program on January 11, 2000.

      The Company believes that funds generated from continuing operations,
capital lease financing and borrowing under the existing and any future
revolving credit facilities will be sufficient to finance the Company's
investment commitments, anticipated working capital and capital expenditure
requirements for at least the next 24 months. The Company's operating cash flow
could be adversely affected if there was a decrease in demand for the Company's
products, if the Company was unable to continue to reduce its inventory, or if
General was unable to renew or replace the revolving credit facility when the
current facility expires on September 30, 2003.


                                                                              12
<PAGE>

The table and notes below describe the Company's contractual obligations related
to its liquidity.
(In Thousands)

<TABLE>
<CAPTION>
                                                                   Payments Due by Period
                                               -----------------------------------------------------------
                                                              Less
                                                             than 1       1 - 3        4 - 5       After 5
                                                Total         year        years        years        years
                                               -------      -------      -------      -------      -------
<S>                                            <C>          <C>          <C>          <C>          <C>
Contractual Obligations:

Bank revolving line of credit                  $14,041      $14,041      $    --      $    --      $    --

Notes payable - banks                           11,872        8,756        3,116           --           --

Capital lease obligations                          363          193          170           --           --

Other long - term liabilities - affiliate          608           --          608           --           --

Note payable - other                             3,105          200        2,905           --           --
                                               -------      -------      -------      -------      -------

Total obligations - per Balance Sheet           29,989       23,190        6,799           --           --

Off Balance Sheet items:

Operating leases                                 6,345        1,348        3,740        1,257           --

Equity investment obligations                    1,000        1,000           --           --           --
                                               -------      -------      -------      -------      -------

Total contractual cash obligations             $37,334      $25,538      $10,539      $ 1,257      $     0
                                               =======      =======      =======      =======      =======
</TABLE>

Pursuant to requirements imposed in 1993 by OFAC, at the end of 2002 the Company
also carried on its books a $619,000 net payable to General IKL Corp., an
affiliate. The requirement arose out of sanctions imposed by the U.S. government
on the countries comprising the former Republic of Yugoslavia, "freezing"
certain assets in the United States. In February, 2003, OFAC "unfroze" assets
affected by the sanctions and the Company reduced a significant portion of the
IKL payable which the Company disputed. As a result, the Company now carries on
its books a net payable in the amount of $180,000 to General IKL Corp. as of
June 28, 2003.

The Company uses letters of credit to support certain advance payments received
from customers in the normal course of business.

Inflation

      The effect of inflation on the Company has not been significant during the
last two fiscal years.


                                                                              13
<PAGE>

Item 3. Quantitative and Qualitative Disclosure about Market Risk

      The Company is subject to market risk primarily associated with changes in
interest rates and foreign currency exchange rates. In order to manage the
volatility relating to interest rates, the Company has entered into an interest
rate swap agreement. In order to manage the volatility relating to foreign
currency exchange rates the Company denominates substantially all purchase and
sale transactions in U.S. dollars. The Company does not anticipate any material
changes in its primary market risk exposures in the near future.

The Company does not execute transactions or hold derivative financial
instruments for trading purposes.

Interest Rate Risk

      The Company's primary market risks are fluctuations in interest rates and
variability in interest rate spread relationships (i.e., prime to LIBOR spreads)
on its bank debt and interest rate swap. As of June 28, 2003, the Company had
$6,750,000 outstanding subject to an interest rate swap. This swap is used to
convert floating rate debt relating to the Company's revolving credit agreement
to fixed rate debt to reduce the Company's exposure to interest rate
fluctuations. The net result was to substitute a fixed interest rate of 9.17%
for the variable rate. The swap amortizes by $75,000 per month and terminates in
December 2007. Under the interest rate environment during the twenty-six weeks
ended June 28, 2003, the Company's interest rate swap agreement resulted in
additional expense of approximately $207,000.

      The following table provides information about the Company's interest rate
swap agreement that is sensitive to changes in interest rates. The table
presents average notional amounts and weighted average interest rates by fiscal
year. Notional amounts are used to calculate the contractual cash flows to be
exchanged under the swap contract.

<TABLE>
<CAPTION>
                                                                                                                       Fair
                                            2003        2004         2005         2006        2007        Total        Value
<S>                                        <C>         <C>          <C>          <C>         <C>          <C>          <C>
In Thousands
Interest Rate Swaps
  Variable to Fixed (US$)                  6,712       5,812        4,912        4,012       3,112        6,750        1,064
    Average Pay Rate                        9.17%       9.17%        9.17%        9.17%       9.17%        9.17%
    Average Receive Rate                    3.35%       3.86%        4.40%        4.82%       5.17%
</TABLE>

The following table provides information about the Company's variable rate debt.

<TABLE>
<CAPTION>
                                                                                                                      Fair
                                            2003        2004         2005        2006        2007        Total        Value
<S>                                        <C>         <C>          <C>          <C>         <C>          <C>          <C>
In Thousands
Debt:
  Variable Rate (US$)                     15,009      14,718       12,794       13,300      13,800       14,041       14,041
    Average Interest Rate                   3.75%       4.25%        4.75%        5.25%       6.25%        3.75%
</TABLE>

The Company's management believes that fluctuations in interest rates in the
near term would not materially affect the Company's consolidated operating
results, financial position or cash flows as the Company has limited risks
related to interest rate fluctuations.


                                                                              14
<PAGE>

Foreign Currency Risk

      The Company does not use foreign currency forward exchange contracts or
purchased currency options to hedge local currency cash flows or for trading
purposes. All sales arrangements from domestic companies with international
customers are denominated in U.S. dollars. Only a small fraction of the
Company's purchases are denominated in foreign currency. The Company purchases
approximately $2,000,000 of product monthly from its Chinese joint ventures,
which use proceeds thereof, to satisfy locally incurred liabilities in Renminbi
(RMB). Had there been an adverse 10% fluctuation between the exchange rate of
the U.S. dollar and the RMB, it would have resulted in a potential loss of
earnings of approximately $1,200,000 for the twenty-six weeks ended June 28,
2003. However, based upon minimal historical volatility between the RMB and the
U.S. dollar, the Company believes the likelihood of a significant potential loss
in future earnings from changes in the foreign currency exchange rate to be
minimal.

Item 4. Controls and Procedures

The Company's chief executive officer and controller have evaluated the
Company's disclosure controls and procedures (as defined in Rule 13a - 14(c) and
Rule 15d - 14(c) under the Exchange Act) as of June 28, 2003 and concluded that
those disclosure controls and procedures are effective.

There has been no changes in the Company's internal controls or in other factors
known to the Company that could significantly affect these controls subsequent
to their evaluation, nor any corrective actions with regard to significant
deficiencies and material weaknesses.

While the Company believes that its existing disclosure controls and procedures
have been effective to accomplish these objectives, the Company intends to
continue to examine, refine and formalize its disclosure controls and
procedures.


                                                                              15
<PAGE>

                                     PART II

Item 1. Legal Proceedings

   Antidumping Proceeding covering Ball Bearings and Parts thereof from China.

In its 10-K filed on April 15, 2002, the Company disclosed the filing of an
Antidumping proceeding (the "Proceeding") in the U.S. International Trade
Commission ("ITC") and U.S. Department of Commerce ("DOC") by the American
Bearing Manufacturer's Association ("ABMA"), seeking to impose antidumping
duties on ball bearings and parts thereof from the People's Republic of China.

In its 10-K filed on April 14, 2003, the Company disclosed that the ITC
dismissed the entire Proceeding, finding that the United States ball bearing
industry has not been materially injured or threatened with material injury by
imports of ball bearings from China.

On June 13, 2003, the ABMA filed appeals with the Court of International Trade
("CIT") seeking reversals of the final determinations of DOC and ITC and remand
of the Proceedings back to DOC and ITC.

The Company is not a party to the above appeals, but has been advised by its
international trade counsel that ITC determinations of no injury are rarely
reversed as a result of appeals.

In the event the CIT were to reverse the ITC's ruling and remand the matter back
to the ITC, and if the ITC were to find, on remand, that ball bearings from
China harmed or threatened harm to the U.S. ball bearing industry, it could
result in the imposition of antidumping duties on ball bearings from China and
have a materially adverse impact on the company.

Item 6. Exhibits and Reports on Form 8-K

      (a)   Exhibits

            99.4 Certification of the Chief Executive Officer and the Controller

      (b)   Current reports on Form 8-K

            The Company did not file any reports on Form 8-K for the quarter
            ended June 28, 2003.


                                                                              16
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Quarterly Report on Form 10-Q to be signed on
its behalf by the undersigned, thereunto duly authorized.

Date: August 12, 2003.

                                          GENERAL BEARING CORPORATION
                                          (Registrant)


                                          /s/ David L. Gussack
                                          ----------------------------------
                                          David L. Gussack
                                          President


                                          /s/ Rocky Cambrea
                                          ----------------------------------
                                          Rocky Cambrea
                                          Controller


                                                                              17
<PAGE>

                  CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

I, David L. Gussack, President of General Bearing Corporation, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of General Bearing
      Corporation;

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in this
      quarterly report;

4.    The registrant's other certifying officers and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a)    designed such disclosure controls and procedures to ensure that
            material information relating to the registrant, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this
            quarterly report is being prepared;

      b)    evaluated the effectiveness of the registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this quarterly report (the "Evaluation Date"); and

      c)    presented in this quarterly report our conclusions about the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed, based on
      our most recent evaluation, to the registrant's auditors and the audit
      committee of registrant's board of directors (or persons performing the
      equivalent function):

      a)    all significant deficiencies in the design or operation of internal
            controls which could adversely affect the registrant's ability to
            record, process, summarize and report financial data and have
            identified for the registrant's auditors any material weaknesses in
            internal controls; and

      b)    any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal controls; and

6.    The registrant's other certifying officers and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.

Date: August 12, 2003


/s/ David L. Gussack
-------------------------
David L. Gussack
President


                                                                              18
<PAGE>

                         CERTIFICATION OF THE CONTROLLER

I, Rocky Cambrea, Controller of General Bearing Corporation, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of General Bearing
      Corporation;

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the registrant as of, and for, the periods presented in this
      quarterly report;

4.    The registrant's other certifying officers and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a)    designed such disclosure controls and procedures to ensure that
            material information relating to the registrant, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this
            quarterly report is being prepared;

      b)    evaluated the effectiveness of the registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this quarterly report (the "Evaluation Date"); and

      c)    presented in this quarterly report our conclusions about the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed, based on
      our most recent evaluation, to the registrant's auditors and the audit
      committee of registrant's board of directors (or persons performing the
      equivalent function):

      a)    all significant deficiencies in the design or operation of internal
            controls which could adversely affect the registrant's ability to
            record, process, summarize and report financial data and have
            identified for the registrant's auditors any material weaknesses in
            internal controls; and

      b)    any fraud, whether or not material, that involves management or
            other employees who have a significant role in the registrant's
            internal controls; and

6.    The registrant's other certifying officers and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.

Date: August 12, 2003


/s/ Rocky Cambrea
------------------------
Rocky Cambrea
Controller


                                                                              19