EXHIBIT 11
REYNOLDS METALS COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions, except per share data)
EARNINGS PER SHARE
In the first quarter of 1996, earnings per share equals net income, minus
dividends on the Company's preferred stock ("PRIDES"), divided by the weighted-
average number of common shares outstanding during the period. In the first
quarter 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 PRIDES. For the purpose of this computation, the
conversion rate of 0.93 share of common stock for each share of PRIDES was
based on the average market value of the Company's common stock during the
period ($50.65 per share). Common share equivalents relating to the PRIDES
were not included in the first quarter of 1996 since their effect would have
been anti-dilutive.
QUARTERS ENDED MARCH 31
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1996 1995
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Weighted-average shares outstanding:
Common shares 63,604,000 62,220,000
Common share equivalents - 10,261,000
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Total 63,604,000 72,481,000
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Income before cumulative effect of accounting change $17 $82
Less preferred stock dividends 9 -
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$8 $82
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Cumulative effect of accounting change (15) -
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($7) $82
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Earnings per share:
Income before cumulative effect of accounting change $0.12 $1.13
Cumulative effect of accounting change (0.24) -
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Net income (loss) ($0.12) $1.13
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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 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 anti-dilutive in 1996 and was
not material in 1995.
QUARTERS ENDED MARCH 31
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1996 1995
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Weighted-average shares outstanding:
Common shares 63,604,000 62,220,000
Common share equivalents 11,000,000 11,000,000
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Total 74,604,000 73,220,000
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Income before cumulative effect of accounting change $17 $82
Cumulative effect of accounting change (15) -
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Net income $2 $82
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Earnings per share (fully diluted):
Income before cumulative effect of accounting change $0.23 $1.12
Cumulative effect of accounting change (0.21) -
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Net income $0.02 $1.12
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