EXHIBIT 11
REYNOLDS METALS COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions, except per share data)
EARNINGS PER SHARE
In the second quarter and six months of 1995, earnings per share
equals net income divided by the weighted-average number of
common shares and common share equivalents outstanding during the
period. The number of common share equivalents outstanding was
based on the assumed conversion of the Company's preferred stock
("PRIDES"). For the purpose of this computation, the conversion
rates of common stock for each share of PRIDES were based on the
average market value of the Company's common stock during the
period. In the second quarter and six months of 1994, earnings
per share equals net income, minus PRIDES dividends, divided by
the weighted-average number of common shares outstanding during
the period. Common share equivalents relating to the PRIDES were
not included in the second quarter or six months of 1994 since
their effect would have been anti-dilutive.
QUARTERS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
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1995 1994 1995 1994
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Weighted-average shares outstanding:
Common shares 62,926,000 61,971,000 62,573,000 61,466,000
Common share equivalents 10,518,000 - 10,388,000 -
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Total 73,444,000 61,971,000 72,961,000 61,466,000
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Net income (loss) $111 $12 $193 $(9)
Less preferred stock dividends - 9 - 16
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$111 $3 $193 $(25)
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Earnings per share $1.51 $0.05 $2.64 $(0.41)
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Conversion rate 0.96 - 0.94 -
Average market value of common stock $49.41 - $50.03 -
EARNINGS PER SHARE (FULLY DILUTED):
Earnings per share (fully diluted) equals net income divided by
the weighted-average number of common shares and common share
equivalents outstanding during the period. The number of common
share equivalents outstanding was based on the maximum potential
issuance of common shares upon conversion of PRIDES, which is one
share of common for each share of PRIDES. This computation was
made for presentation purposes only since its effect was not
material in 1995 and was anti-dilutive in 1994. The difference
between the number of common share equivalents for the six months
ended June 30, 1995 and 1994 is due to the PRIDES having been
issued on January 25, 1994.
QUARTERS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
_________________________ ________________________
1995 1994 1995 1994
_________________________ ________________________
Weighted-average shares outstanding:
Common shares 62,926,000 61,971,000 62,573,000 61,466,000
Common share equivalents 11,000,000 11,000,000 11,000,000 9,533,000
________________________ ________________________
Total 73,926,000 72,971,000 73,573,000 70,999,000
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Net income (loss) $111 $12 $193 $(9)
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Earnings per share (fully diluted) $1.50 $0.16 $2.62 $(0.13)
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