EXHIBIT 11
REYNOLDS METALS COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions, except share data)
EARNINGS PER SHARE:
For 1995, earnings per share equals net income divided by the weighted-average
number of common shares and common share equivalents outstanding during the
year. 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 shown below, which refers to
the number of shares of common stock to be received for each share of PRIDES,
was based on the average market value of the Company's common stock during the
year (also shown below). For 1994, earnings per share equals net income, minus
PRIDES dividends, divided by the weighted-average number of common shares
outstanding during the year. Common share equivalents relating to the PRIDES
were not included in 1994 since their effect would have been anti-dilutive, nor
in 1993 since the PRIDES were not issued until January 25, 1994. For 1993,
earnings per share equals net income divided by the weighted-average number of
common shares outstanding during the year.
YEARS ENDED DECEMBER 31
- -----------------------------------------------
1995 1994 1993
- -----------------------------------------------
Weighted-average shares outstanding:
Common shares 63,051,000 61,756,000
59,850,000
Common share equivalents 9,704,000 - -
- -----------------------------------------------
Total 72,755,000 61,756,000
59,850,000
===============================================
Net income (loss) $389 $122
$(322)
Less preferred stock dividends - 34
- -
- -----------------------------------------------
$389 $88
$(322)
===============================================
Earnings per share $5.35 $1.42
$(5.38)
===============================================
Conversion rate 0.88 -
- -
Average market value of common stock $53.56 -
- -
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 year. 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, was anti-dilutive in 1994 and was not applicable in 1993.
The difference between the number of common share equivalents for the years
ended December 31, 1995 and 1994 is due to the PRIDES having been issued on
January 25, 1994.
YEARS ENDED DECEMBER 31
- ------------------------------------------------
1995 1994 1993
- ------------------------------------------------
Weighted-average shares outstanding:
Common shares 63,051,000 61,756,000
59,850,000
Common share equivalents 11,000,000 10,277,000 -
- ------------------------------------------------
Total 74,051,000 72,033,000
59,850,000
================================================
Net income (loss) $389 $122
$(322)
================================================
Earnings per share (fully diluted) $5.26 $1.69
$(5.38)
================================================