EXHIBIT 11
REYNOLDS METALS COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions, except per share data)
EARNINGS PER SHARE
In the third quarter and nine 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 rate was based on the average market value of the Company's
common stock during the period. In the third quarter and nine 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 third quarter or nine months of 1994 since their effect would have
been anti-dilutive.
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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1995 1994 1995 1994
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Weighted-average shares outstanding:
Common shares 63,463,000 62,018,000 62,870,000 61,650,000
Common share equivalents 9,020,000 - 9,719,000 -
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Total 72,483,000 62,018,000 72,589,000 61,650,000
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Net income (loss) $112 $62 $305 $53
Less preferred stock dividends - 9 - 25
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$112 $53 $305 $28
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Earnings per share $1.56 $0.86 $4.20 $0.45
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Conversion rate 0.82 - 0.88 -
Average market value of common stock $60.37 - $53.48 -
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 nine
months ended September 30, 1995 and 1994 is due to the PRIDES having been
issued on January 25, 1994.
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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1995 1994 1995 1994
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Weighted-average shares outstanding:
Common shares 63,463,000 62,018,000 62,870,000 61,650,000
Common share equivalents 11,000,000 11,000,000 11,000,000 10,022,000
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Total 74,463,000 73,018,000 73,870,000 71,672,000
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Net income (loss) $112 $62 $305 $53
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Earnings per share (fully diluted) $1.51 $0.85 $4.13 $0.74
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