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 HADERA, Israel, Nov. 11 /PRNewswire/ -- American Israeli Paper Mills Ltd. (AMEX: AIP) today reported financial results for the third quarter and nine months ended Sept. 30, 1993. In addition, the Company's Board of Directors declared a cash dividend in the amount Of NIS 1.55 ($0.526) per share. The dividend will be paid on Dec. 28, 1993 to shareholders of record on Nov. 29, 1993. The dollar value of the cash dividend is given at the exchange rate in effect on Nov. 10, 1993 of NIS 2.945 to $1. The rate of exchange on the record date will determine the exact dollar payout. The payment of the cash dividend in December is a departure from the Company's previous practice of paying cash dividends in June for the year ended the previous December. The Company anticipates that any future cash dividends will be paid at any time during the year for the same year.
 Consolidated sales for the third quarter of 1993 amounted to NIS 170.9 million ($59.7 million), compared with NIS 202.1 million ($70.6 million) for the corresponding period last year. Consolidated sales for the first nine months of 1993 amounted to NIS 542.7 million ($189.5 million), compared with sales of NIS 601.2 million ($209.9 million) for the same period a year ago.
 Net income for the third quarter of this year amounted to NIS 9.6 million ($3.3 million) , compared with net income of NIS 8.1 million ($2.8 million ) for the third quarter of 1992. Net income for the first nine months was NIS 19.4 million ($6.8 million), compared with NIS 24.5 million ($8.6 million) for the corresponding period in the prior year.
 Earnings per share for the third quarter of 1993 were NIS 2.52 ($0.88), compared with NIS 2.12 ($0.74) for the same quarter a year ago. Earnings per share for the first nine months of 1993 were NIS 5.10 ($1.78) compared with NIS 6.44 ($2.25) in the same period in 1992. Mr. Y. Yerushalmi, General Manager and C.E.O. of AIPM, said that the Company's profitability was affected by the continued erosion in dollar sales prices due to the ongoing crisis in the world paper industry. "However, the impact of this erosion was partially offset by a number of factors," he explained, "including a quantitative increase in sales, a significant drop in the price of imported fibers, increased output, and savings in energy as well as reduced operating and general expenses,"
 The Company's financial assets amounted to NIS 212.7 million ($74.3 million) at Sept. 30, 1993, similar to that at the same date last year.
 The Company invested some NIS 21.2 million ($7.4 million) in fixed assets during the first nine months of 1993, mainly in production systems and transportation equipment. It also ordered an innovative production line for the manufacture of disposable training pants for toddlers.
 The Company commenced work on rebuilding Paper Machines 1 and 2 for the production of brown papers. The scope of this project, to be carried out mainly in 1994, is some $14 million.
 Amnir, a subsidiary, recently signed an agreement to enter into a joint venture with Compagnie Generale de Chauffe, a large French international corporation which is engaged in the field of solid waste handling and has waste-to-energy plants all over the world. The joint venture intends to broaden the Company's activities in this field, including the establishment of waste-to-energy plants in Israel.
 A new subsidiary, Graffiti Office Equipment & Paper Marketing Ltd., was established in the third quarter of this year, and commenced operations at the beginning of September. The firm is owned jointly by the Company (70 percent) and Hamashbir Hamercazi (30 percent). Graffiti is engaged in the wholesale marketing of office supplies and paper, and operates through four sales centers located in each of Israel's major cities.
 Summary of Results
 Adjusted NIS and U.S. Dollars
 in thousands except per share amounts
 Three Months Ended Sept. 30
 Adjusted NIS U.S. Dollars
 1993 1992 1993 1992
 Net sales 170,932 202,120 59,683 70,573
 Net earnings 9,571 8,056 3,342 2,813
 Earnings per share 2.52 2.12 0.88 0.74
 Nine Months Ended Sept. 30
 Adjusted NIS U.S. Dollars
 1993 1992 1993 1992
 Net sales 542,699 601,239 189,490 209,930
 Net earnings 19,412 24,519 6,778 8,561
 Earnings per share 5.10 6.44 1.78 2.25
 Note: Adjusted new Israeli Shekel amounts have been adjusted to reflect changes in the rate of exchange between the U.S. dollar and the New Israeli Shekel as at the end of September 1993. The representative exchange rate at Sept. 30, 1993 was NIS 2.864 equals $1.
 -0- 11/11/93
 /CONTACT: Philip Y. Sardoff of Green, Lind & McNulty, 908-686-7500/

CO: American Israeli Paper Mills Ltd. ST: IN: PAP SU: ERN DIV

TW-MP -- NY025 -- 3162 11/11/93 10:52 EST
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Publication:PR Newswire
Date:Nov 11, 1993

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