NEW YORK (Sep. 28)
Net earnings of American Israeli Paper Mills, Ltd. in the current fiscal year, which ends March 31, 1961. may run between 50 and 60 cents per share of American shares, Joseph M. Mazer, board chairman, estimated here today at the company’s first annual meeting of stockholders held outside of Israel. This would compare with 27 cents per American share (equal to five ordinary Israeli shares) in the past fiscal year, and 33 cents in the year ended March 31, 1959.
He told stockholders that the company is raising an additional $1, 000, 000 in connection with the expansion program, now nearing completion, through the sale in Israel only of 1, 000, 000 ordinary shares through an underwriting group headed by Bank Leumi, The shares will go on public sale by the underwriters on October 7.
“Even with the addition of 1, 000, 000 ordinary shares (equal to 200, 000 ADRs), ” Mr. Mazer continued, “management expects to continue the cash dividend at the annual rate of 25 cents on ADR shares, or five cents on ordinary shares. ” The stockholders approved a board recommendation of stock dividend of three percent on the company’s shares, which will be payable October 25 to shareholders of record September 28. In addition, shareholders reelected all present directors; approved a resolution to increase authorized ordinary shares to 14, 000, 000 from 12,500, 000 (2, 800, 000 ADRs from 2,500, 000 ADRs); and approved a contribution by the company to the managements’ profit sharing retirement plan,