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 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 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 PRIDES. For the purpose of this
computation, the respective 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 applicable period. Common
share equivalents relating to the PRIDES were not included in the
second quarter or six months of 1996 since their effect would
have been anti-dilutive.
QUARTERS ENDED SIX
MONTHS ENDED
JUNE 30
JUNE 30
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- ------------------------
1996 1995 1996
1995
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- ------------------------
Weighted-average shares outstanding:
Common shares 63,666,000 62,926,000
63,635,000 62,573,000
Common share equivalents - 10,518,000
- - 10,388,000
-----------------------
- ------------------------
Total 63,666,000 73,444,000
63,635,000 72,961,000
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========================
Income before cumulative effect of
accounting change $60 $111
$77 $193
Less preferred stock dividends 9 -
18 -
-----------------------
- ------------------------
51 111
59 193
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- ------------------------
Cumulative effect of accounting
change - -
(15) -
-----------------------
- ------------------------
$51 $111
$44 $193
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Earnings per share:
Income before cumulative effect of
accounting change $0.81 $1.51
$0.93 $2.64
Cumulative effect of accounting
change - -
(0.24) -
-----------------------
- ------------------------
Net income $0.81 $1.51
$0.69 $2.64
=======================
========================
Conversion rate - 0.96
- - 0.94
Average market value of common
stock - $49.41
- - $50.03
/TABLE
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 SIX
MONTHS ENDED
JUNE 30
JUNE 30
-------------------------
- --------------------------
1996 1995 1996
1995
-------------------------
- --------------------------
Weighted-average shares outstanding:
Common shares 63,666,000 62,926,000
63,635,000 62,573,000
Common share equivalents 11,000,000 11,000,000
11,000,000 11,000,000
-------------------------
- --------------------------
Total 74,666,000 73,926,000
74,635,000 73,573,000
=========================
==========================
Income before cumulative effect of
accounting change $60 $111
$77 $193
Cumulative effect of accounting
change - -
(15) -
-------------------------
- --------------------------
Net income $60 $111
$62 $193
=========================
==========================
Earnings per share (fully diluted):
Income before cumulative effect of
accounting change $0.81 $1.50
$1.04 $2.62
Cumulative effect of accounting
change - -
(0.21) -
-------------------------
- --------------------------
Net income $0.81 $1.50
$0.83 $2.62
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