UA-R-GC-1914-01-01-1990-05_Page-057

Thursday May 17, 1990 AUC Board of Trustees - LE Investment Committee Minutes Meeting of the LE Investment Committee The American University in Cairo Meridian House International 2:30pm Trustees Attending: Mr. Hedlund, Mr. Hyde(Chainnan), Mr. McCloy, Mr. Kelberer, Mr. Kruger, Dr. Lamont, Mr. Snaith 1. The agenda was approved as presented. 2. The minutes of the last meeting were approved. 3. Investment Updates - Cairo Beverages & Industrial Co., S.A.E. - Sales were less than anticipated last year and another loss was recorded, due in part to increased competition. A capital increase is under review. Arab Aluminum S.A.E. - The audited financials for 1989 showed a net profit of LE4.6 million on net sales ofLE47.7 million. Arab Aluminum's Board recom­mended payment to shareholders of a cash dividend of LE4.36 million, with some reservations from the company's auditors about the ability of the company's cash flow to withstand such a heavy pay-out. For the three months ended March 31, 1990, results have been less satisfying than in past years, with net sales of LE12.8 million (against a budget ofLE16.8 million) and net profit ofLEO.5 mil­lion (against a budget ofLE1.4 million). Chloride Egypt. S.A.E. - For the full year the company expects that net profit of LE5 million is achievable. The VEEF should receive a dividend of approximate­ly LE300,OOO, unless a decision is taken to lower the pay-out ratio. Colgate-Palmolive (Egypt) S.A.E. - Following damage to machinery and equip­ment (it was inadvertently dropped in Alexandria's harbor) it is doubtful whether the company will be able to deliver the modest profit promised for 1989. 4. Approval of the Preliminary Budget for 1990/91 - The preliminary budget for 1990/91 was approved.