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 October 2, 1999

                                       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: (914) 358-6000

        Securities registered pursuant to Section12(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

      At November 15, 1999, the Registrant had issued and outstanding 3,924,950
shares of common stock, $.01 par value per share.

<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," "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 affect 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, quantity 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 OCTOBER 2, 1999

                                TABLE OF CONTENTS

PART I
                                                                      PAGE NO.
                                                                      --------

      Item 1.     Financial Statement . . . . . . . . . . . . . . . .  2 - 6
      Item 2.     Management's Discussion and Analysis of Results of
                  Operations and Financial Condition . . . . . . . . . 7 - 10

PART II

     Item 1.      Legal Proceedings . . . . . . . . . . . . . . . . . .    11
     Item 6.      Exhibits and Reports on Form 8-K . . . . . . . . . .     11

Signature         . . . . . . . . . . . . . . . . . . . .. . . . . . .     12


                                                                               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>
                                                                             Oct. 2,     Jan. 2,
                                                                              1999        1999
                                                                            --------    --------
                                    ASSETS                                 (Unaudited)
<S>                                                                         <C>         <C>
Current:
   Cash                                                                     $     11    $     29
   Accounts receivable - trade, less allowance for
    doubtful accounts of $187 and $200                                         6,081       5,772
   Inventories                                                                18,624      16,423
   Prepaid expense and other current assets                                      756         358
   Advances to affiliates                                                      1,261         940
   Advances to parent                                                            308          --
   Deferred tax asset                                                            426         437
                                                                            --------    --------
          Total current assets                                                27,467      23,959

   Fixed assets, net                                                           3,384       3,277
   Investments in affiliates                                                   1,928       1,695
   Advances to affiliate                                                         437         423
   Deferred tax asset                                                             --         956
   Other assets                                                                   71          28
                                                                            --------    --------
          Total Assets                                                      $ 33,287    $ 30,338
                                                                            ========    ========

                     LIABILITIES AND STOCKHOLDERS' EQUITY

Current:
   Note payable - bank                                                      $  9,096    $  8,126
   Accounts payable:
          Trade                                                                1,009       1,271
          Affiliate                                                               --           3
          Parent                                                                  --          94
   Accrued expenses and other current liabilities                              1,273       1,128
   Current maturities of long-term debt                                           63         286
                                                                            --------    --------
          Total current liabilities                                           11,441      10,908

Long-term debt, less current maturities
   Bank                                                                           --         557
   Other                                                                         440         440
   Affiliate                                                                     986         954
                                                                            --------    --------
          Total long-term debt                                                 1,426       1,951

Deferred taxes                                                                   187          --

Commitments and contingencies
Stockholders' equity:
   Preferred stock par value $.01 per share - shares authorized 1,000,000
     none issued and outstanding                                                  --          --
   Common stock par value $.01 per share - shares authorized 19,000,000
     issued and outstanding 3,924,950 and 3,918,950 shares                        39          39

   Additional paid-in capital                                                 28,800      28,758
   Deficit                                                                    (8,606)    (11,318)
                                                                            --------    --------
          Total stockholders' equity                                          20,233      17,479
                                                                            --------    --------
   Total liabilities and stockholders' equity                               $ 33,287    $ 30,338
                                                                            ========    ========
</TABLE>

      See accompanying notes to condensed consolidated financial statements


                                                                               2
<PAGE>

                             FINANCIAL STATEMENTS OF
                  GENERAL BEARING CORPORATION AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF INCOME
                                   (UNAUDITED)
              (In Thousands - Except for Shares and Per Share Data)

<TABLE>
<CAPTION>
                                                 Thirty-nine weeks ended       Thirteen weeks ended
                                                 -----------------------       --------------------
                                                  Oct. 2,        Sept. 26,     Oct. 2,       Sept. 26,
                                                    1999            1998         1999           1998
                                               -----------    -----------    -----------    -----------
<S>                                            <C>            <C>            <C>            <C>
Sales                                          $    39,845    $    32,730    $    11,687    $    11,382

Cost of sales                                       27,565         22,308          8,103          7,818
                                               -----------    -----------    -----------    -----------
Gross Profit                                        12,280         10,422          3,584          3,564

Selling, general and administrative expenses         7,532          6,822          2,451          2,171
                                               -----------    -----------    -----------    -----------
Operating income                                     4,748          3,600          1,133          1,393

Net interest expense                                   533            563            123            209

Equity in income of affiliates                         (83)            --            (67)            --

Gain on sale of equipment                               --           (350)            --            (55)
                                               -----------    -----------    -----------    -----------
Income before income taxes                           4,298          3,387          1,077          1,239

Income tax                                           1,586          1,323            379            471
                                               -----------    -----------    -----------    -----------
Net Income                                     $     2,712    $     2,064    $       698    $       768
                                               ===========    ===========    ===========    ===========

Net income per common share:

   Basic                                       $      0.69    $      0.53    $      0.18    $      0.20
                                               -----------    -----------    -----------    -----------
   Diluted                                     $      0.69    $      0.52    $      0.18    $      0.20
                                               -----------    -----------    -----------    -----------

Weighted average number of common shares:

   Basic                                         3,921,620      3,913,376      3,924,225      3,918,950
                                               -----------    -----------    -----------    -----------
   Diluted                                       3,928,111      3,992,067      3,929,901      3,926,382
                                               -----------    -----------    -----------    -----------
</TABLE>

      See accompanying notes to condensed consolidated financial statements


                                                                               3
<PAGE>

                             FINANCIAL STATEMENTS OF
                  GENERAL BEARING CORPORATION AND SUBSIDIARIES

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

<TABLE>
<CAPTION>
                                                                          Thirty-nine weeks ended
                                                                          -----------------------
                                                                           Oct. 2,    Sept. 26,
                                                                             1999        1998
                                                                           -------      -------
<S>                                                                        <C>          <C>
Cash flows from operating activities:

          Net Income                                                       $ 2,712      $ 2,064

     Add (deduct) noncash items charged (credited) to income:

          Deferred income taxes                                              1,154        1,180

          Depreciation and amortization                                        374          424

          Equity in income of affiliates                                       (83)          --

          Loss / (gain) on disposal of fixed assets                              4         (350)

     Add (deduct) changes in operating assets and liabilities:

          Accounts receivable                                                 (308)      (1,136)

          Inventories                                                       (2,200)      (4,043)

          Prepaid expenses and other assets                                   (446)          24

          Due to (from) affiliates                                            (307)         211

          Accounts payable and accrued expenses                               (117)        (369)
                                                                           -------      -------
               Net cash provided by (used in) operating activities             783       (1,995)
                                                                           -------      -------
Cash flows from investing activities:

     Investments in affiliates, net                                           (150)        (936)

     Fixed asset purchases                                                    (481)        (976)

     Proceeds from sale of fixed assets                                         --          694
                                                                           -------      -------
               Net cash used in investing activities                          (631)      (1,218)
                                                                           -------      -------
Cash flows from financing activities:

     Proceeds from sale of common shares, net                                   42          133

     Repayment of long-term debt - bank                                       (557)        (167)

     Repayment of current maturity - bank                                     (223)          --

     Increase in note payable - bank                                           970        3,582

     Increase in other long-term debt                                           --          504

     Repayment of long-term debt and other balances - parent                  (402)        (845)
                                                                           -------      -------
               Net cash provided by (used in) financing activities            (170)       3,207
                                                                           -------      -------

Net decrease in cash                                                           (18)          (6)

Cash, beginning of period                                                       29          118
                                                                           -------      -------
Cash, end of period                                                        $    11      $   112
                                                                           =======      =======

Cash paid during 39 weeks for:

     Interest                                                                  542          599

     Income taxes                                                              628           56
</TABLE>

      See accompanying notes to condensed consolidated financial statements


                                                                               4
<PAGE>

                  GENERAL BEARING CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of             The accompanying unaudited condensed consolidated
   Presentation   financial statements have been prepared in accordance with
                  generally accepted accounting principles for interim financial
                  information and with the instruction 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
                  thirty-nine weeks ended October 2, 1999 are not necessarily
                  indicative of the results that may be expected for the year
                  ending January 1, 2000. 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 January 2, 1999.

2. Earnings             The calculation of diluted earnings per share includes
   per Share      the effect of outstanding options and warrants to the extent
                  they are dilutive.

3. Long Term            Due to favorable interest rates, the Company
   Debt           consolidated the remaining term loan balance ($669,000) into
                  the existing revolving credit facility during June 1999.

4. Litigation           There has been no material change in litigation since
                  the events reported in the Company's 10-Q for the fiscal
                  quarter ended July 3, 1999.

5. Segment              During 1998, the Company, adopted Statement of Financial
   Information    Accounting Standards No. 131 ("SFAS 131"), Disclosures about
                  Segments of an Enterprise and Related Information. SFAS 131
                  supersedes SFAS 14, Financial Reporting for Segments of a
                  Business Enterprise, replacing the "industry segment" approach
                  with the "management" approach. The management approach
                  designates the internal reporting that is used by management
                  for making operating decisions and assessing performance as
                  the source of the Company's reportable segments.

                        The Company operates in two divisions: the OEM Division,
                  which supplies Original Equipment Manufacturers (OEM's), and
                  the Distribution Division, which serves distributors that
                  supply the repair and maintenance aftermarket and small OEM's.
                  The two divisions supply principally in the United States.

                        The accounting policies of the segments are the same as
                  those described in the summary of significant accounting
                  policies outlined in the Company's 10-K for the fiscal year
                  ended January 2, 1999. The Company evaluates segment
                  performance based on operating income.

                        The following table presents information about the
                  Company's business segments.


                                                                               5
<PAGE>

                  GENERAL BEARING CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 (In Thousands)
<TABLE>
<CAPTION>
                          Year to Date October 2, 1999

                                                OEM     DISTRIBUTOR      OTHER      TOTAL
                                              -------------------------------------------
<S>                                            <C>         <C>         <C>         <C>
Net sales from external customers              $29,419     $10,426     $    --     $39,845

Gross profit                                     6,721       5,559          --      12,280

Operating income                                 2,745       2,003          --       4,748

Depreciation / amortization                        299          75          --         374

Capital expenditures                               301          31         149         481

Total assets                                    19,980       7,137       6,170      33,287

                         Year to Date September 26, 1998

                                                OEM     DISTRIBUTOR      OTHER      TOTAL
                                              -------------------------------------------
Net sales from external customers              $21,772     $10,958     $    --     $32,730

Gross profit                                     4,847       5,575          --      10,422

Operating income                                 1,401       2,199          --       3,600

Depreciation / amortization                        285         139          --         424

Capital expenditures                               763          35         178         976

Total assets                                    16,732       7,735       7,248      31,715

                          Quarter Ended October 2, 1999

                                                OEM     DISTRIBUTOR      OTHER      TOTAL
                                              -------------------------------------------
Net sales from external customers              $ 8,446     $ 3,241     $    --     $11,687

Gross profit                                     1,888       1,696          --       3,584

Operating income                                   609         524          --       1,133

Depreciation / amortization                        106          27          --         133

Capital expenditures                               108          20          47         175

Total assets                                    19,980       7,137       6,170      33,287

                        Quarter Ended September 26, 1998

                                                OEM     DISTRIBUTOR      OTHER      TOTAL
                                              -------------------------------------------
Net sales from external customers              $ 7,877     $ 3,505     $    --     $11,382

Gross profit                                     1,810       1,754          --       3,564

Operating income                                   682         711          --       1,393

Depreciation / amortization                        119          45          --         164

Capital expenditures                                28          22          62         112

Total assets                                    16,732       7,735       7,248      31,715
</TABLE>

   Depreciation expense was allocated based on material, labor, and overhead.


                                                                               6
<PAGE>

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

Results of Operations

      Sales. Sales for the third fiscal quarter of 1999 were $11,687,000, an
increase of $305,000 or 3% compared to the same period in 1998. OEM sales
represented 72% of total sales for the third quarter of 1999 compared to 69% of
total sales for 1998. Third quarter sales in the OEM Division increased 7% over
1998 while Distribution Division sales decreased 8%. On a year-to-date basis,
sales were $39,845,000, an increase of $7,115,000 or 22% compared to the same
period in 1998. OEM sales represented 74% and 67% of total year-to-date sales
for 1999 and 1998, respectively. OEM sales are ahead of the prior period by 35%
primarily as a result of new business won during 1998 and 1999. The largest
dollar increase was in tapered roller bearings, where the Company is a primary
supplier to the heavy duty truck trailer market. Also significant are increases
in sales of ball bearings and new sales of a drive line component to the
automotive industry. Sales in the Distribution Division are 5% lower in 1999 as
softness in the industrial aftermarket offset higher pricing.

      Gross Profit. Gross profit was $3,584,000 or 30.7% of sales in the third
fiscal quarter of 1999 compared to $3,564,000 or 31.3% of sales in the third
fiscal quarter in 1998. Gross profit percentage of sales (GP%) was adversely
impacted by product mix as a result of the growth in sales to original equipment
manufacturers combined with reduced higher margin sales to the industrial
aftermarket. GP% for the OEM Division was 22.4% in the third fiscal quarter of
1999 compared to 23.0% in 1998. This is primarily due to product mix and
introductory pricing necessary to increase market share. GP% for the
Distribution Division was 52.3% in the third fiscal quarter of 1999 compared to
50.0% in 1998 mainly due to product mix. On a year-to-date basis, gross profit
was $12,280,000 or 30.8% of sales in 1999 compared to $10,422,000 or 31.8% of
sales in 1998. GP% for the OEM Division was 22.8% compared to 22.3% for 1998.
The increase is primarily due to the higher sales volume, partially offset by
the factors discussed above. GP% for the Distribution Division was 53.3%
compared to 50.9% for 1998 due to higher pricing and product mix.

      Selling, General and Administrative Expenses. Selling, general and
administrative expenses (S,G&A) as a percentage of sales were 21.0% in the third
fiscal quarter of 1999 compared to 19.1% in the third fiscal quarter in 1998.
S,G&A increased by $280,000. This is primarily attributable to increases in
salaries ($120,000) to help support the Company's growth, as well as increases
in outside warehousing ($53,000), commissions ($50,000), professional fees
($31,000), and freight to customers ($29,000). On a year-to-date basis, selling,
general and administrative expenses were 18.9% in 1999 compared to 20.8% in
1998. This reduction reflects the effect of the Company's increased sales
volume. Year-to-date, S,G&A increased $710,000 compared to 1998. The increase is
mainly due to the aforementioned increase in salaries ($408,000), as well as
increases in promotion ($52,000) and various variable costs such as outside
warehousing ($136,000), commissions ($119,000), and freight to customers
($85,000), partially offset by lower professional fees ($109,000) and travel and
entertainment ($102,000).


                                                                               7
<PAGE>

      Operating Income. Operating income of $1,133,000 for the third fiscal
quarter of 1999 represents a 19% decrease compared to the same period in 1998.
The decrease in operating income in the OEM Division of 11% from 1998 to
$609,000 was due primarily to reduced gross profit caused by product mix and
introductory pricing. Operating income in the Distribution Division decreased
26% from 1998 to $524,000 mainly due to lower sales. On a year-to-date basis,
operating income of $4,748,000 in 1999 represents a 32% increase compared to
1998. The OEM Division year-to-date increase of 96% over 1998 to $2,745,000 is
mainly due to increased sales volume partially offset by increased S, G & A
needed to support its growth. The Distribution Division year-to-date operating
income is 9% lower than 1998 as lower sales volume was only partially offset by
higher pricing.

      Interest Expense, net. Net interest expense was $123,000 for the third
fiscal quarter of 1999 compared to $209,000 during the same period in 1998. As a
percentage of sales, net interest expense was 1.1% and 1.8% for the third
quarter of 1999 and 1998, respectively. This improvement is mainly attributable
to an interest rate adjustment that was retroactive to June 1998. On a
year-to-date basis, net interest expense was $533,000 in 1999 compared to
$563,000 in 1998. This decrease is primarily due to the aforementioned refund
partially offset by higher debt needed to fund inventory and receivables growth
created by normal business expansion.

      Income Tax. For the third fiscal quarter of 1999, the Company had an
effective tax rate of 35.2% compared to 38.0% for 1998. On a year-to-date basis,
the Company had an effective tax rate of 36.9% compared to 39.1% in 1998.
Effective tax rates are based on estimated year end effective rates.

      Net Income. As a result of the factors discussed above, net income for the
third fiscal quarter of 1999 decreased by 9% to $698,000 or $.18 per basic and
diluted share from $768,000 or $.20 per basic and diluted share in 1998. On a
year-to-date basis, net income increased by 31% to $2,712,000 or $.69 per basic
and diluted share from $2,064,000 or $.53 and $.52 per basic and diluted share,
respectively, in 1998.

Financial Condition, Liquidity and Capital Resources

      The Company's primary sources of capital have been net cash provided by
operating activities, a term loan, sale of common stock and financing from
affiliates. Working capital requirements also have been financed by a Revolving
Credit Facility. The primary demands on the Company's capital resources have
been the need to fund inventory and receivables growth created in normal
business expansion. At January 2, 1999 and October 2, 1999, the Company had
working capital of $13,051,000 and $16,026,000, respectively.

      Cash provided by operating activities during the first nine months of 1999
was $783,000. Cash provided from net income and deferred income taxes was
partially offset by increased inventory and accounts receivable. The primary
reasons for the inventory increase are to support current and future increased
sales volume in tapered journal bearings, automotive ball bearings and truck
size tapered roller bearings.


                                                                               8
<PAGE>

      Cash used in investing activities during the first nine months of 1999
included $481,000 for capital expenditures. An additional $150,000 was invested
in Ningbo General Bearing Co., Ltd., one of our joint ventures.

      Cash used in financing activities during the first nine months of 1999 was
$170,000. During June 1999, the Company repaid its term loan via a transfer to
the revolving credit facility due to favorable interest rates and borrowing
availability. Additionally, the Company has made a loan to its Parent.

      At October 2, 1999, the Company had outstanding debt of $9,096,000 under
its Revolving Credit Facility and had further availability of approximately $3.0
million.

      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
anticipated working capital and capital expenditure requirements for at least
the next 24 months.

Year 2000 Compliance

      The "Year 2000" problem refers to and arises from deficient computer
programs and related products, such as embedded chips, which do not properly
recognize or process a year that begins with "20" instead of "19". If not
corrected, many computer applications could fail or create erroneous results.
The extent of the potential impact of the Year 2000 problem is not yet known,
and if not timely corrected, it could affect the global economy.

A. The Company's Readiness:

      1. (i) Information Technology (IT) systems: The Company has conducted a
comprehensive review of its computer systems to identify those that could be
affected by the Year 2000 issue. The Company has made changes or installed
upgrades where necessary. The Company has conducted a successful system-wide
test of all software to ensure that our systems, operating properly in 1999,
will remain operational in 2000. (ii) Non IT systems: Non IT systems are those
which typically include "embedded" technology such as microcontrollers and
chips. The Company has evaluated the effect of the Year 2000 problem on non IT
systems and has found these systems compliant.

      2. Third Parties: Due to the pervasive use of computers by the Company in
its dealings with suppliers, customers, financial institutions, and other third
parties, the Year 2000 problem could have a material impact on the Company if
not timely addressed by such third parties. To assess third party readiness, the
Company has surveyed its principal suppliers and financial institutions and
received responses which indicate that all such parties have adequately
addressed the problem. While the company has not surveyed its customers, it has
received surveys from its principal customers which indicate that they are also
addressing the problem.

B. Cost: The Company has not allocated anticipated year 2000 remediation costs
among the various systems which may be affected but believes that total
remediation costs will be immaterial.


                                                                               9
<PAGE>

C. Risks: The Company believes that the greatest risk presented by the year 2000
problem is from third parties, such as suppliers, financial institutions,
utility providers, etc. who may not have adequately addressed the problem. A
failure of any such third party's computer or other applicable systems in
sufficient magnitude could materially and adversely affect the Company. The
Company is not presently able to quantify this risk but believes that it is
minimal based upon the surveys and letters it has received.

D. Contingency Plans: The Company has been documenting its Year 2000 contingency
plan and anticipates that the documentation will be finalized by December 15,
1999. This plan includes detailed manual procedures for every department should
the Year 2000 problem cause an interruption in computer services. Also, the
Company will issue a comprehensive set of year-end reports prior to January 1,
2000 to ensure that the necessary information is available to conduct business
in an uninterrupted fashion until any problems are resolved. The procedures will
include paper back up of the transactions executed during downtime, if any, to
enable the Company to transfer these transactions to the computer system when it
becomes available.

Inflation

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

Quantitative and Qualitative Disclosure about Market Risk

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. The Company does not use derivative financial instruments.

      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.

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 with international customers are denominated in
U.S. dollars. Only a small fraction of the Company's purchases are denominated
in foreign currency. Due to this limited activity, the Company does not expect
any material loss with respect to foreign currency risk.


                                                                              10
<PAGE>

                                     PART II

Item 1. Legal Proceedings

      There have been no material developments in any of the Company's legal
matters subsequent to the events reported in the Company's 10-Q filed August 17,
1999.

Item 6. Exhibits and Reports on Form 8-K

      (a) Exhibit 27. Financial Data Schedule

      (b) The Registrant has not filed any reports on Form 8-K during the
quarter ended October 2, 1999.


                                                                              11
<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: November 16, 1999.

      GENERAL BEARING CORPORATION
      ---------------------------
 (Registrant)


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


  /s/ Barry A. Morris
  -------------------------------
  Barry A. Morris
  Chief Financial Officer


                                                                              12