EXHIBIT 99 Page 1 PRO FORMA STATEMENT OF INCOME (UNAUDITED) (millions, except per share amounts) =============================================================================== Less: North American Pro Reynolds Can Forma Metals Operations Adjust- For the year ended December 31, 1998 Company (A) ments Pro Forma - ------------------------------------------------------------------------------- REVENUES $ 5,859 $772 $ - $ 5,087 COSTS AND EXPENSES Cost of products sold 4,774 677 - 4,097 Selling, administrative and general expenses 378 11 - 367 Depreciation and amortization 252 - - 252 Interest 114 - (42)(B) 72 Operational restructuring effects - net 144 - 336 (C) 480 - ------------------------------------------------------------------------------- 5,662 688 294 5,268 - ------------------------------------------------------------------------------- EARNINGS Income before extraordinary loss and cumulative effect of accounting change 197 84 (294) (181) Taxes on income (credit) 45 32 (112)(D) (99) - ------------------------------------------------------------------------------- INCOME BEFORE EXTRAORDINARY LOSS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE $ 152 $ 52 $(182) $ (82) =============================================================================== EARNINGS PER SHARE (E) Basic: Average shares outstanding 69,709,000 - - 66,019,000 Income before extraordinary loss and cumulative effect of accounting change $2.18 - - $(1.24) =============================================================================== Diluted: Average shares outstanding 69,937,000 - - 66,019,000 Income before extraordinary loss and cumulative effect of accounting change $2.18 - - $(1.24) =============================================================================== The accompanying notes to unaudited pro forma financial information are an integral part of these statements. EXHIBIT 99 Page 2 REYNOLDS METALS COMPANY AND CONSOLIDATED SUBSIDIARIES NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1998 The following unaudited pro forma financial information should be read in conjunction with the consolidated financial statements and related footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 1998. The following pro forma information is presented for illustrative purposes only and is not necessarily indicative of future operating results or financial position. BASIS OF PRESENTATION The unaudited pro forma income statement for the year ended December 31, 1998, presents the consolidated results of operations of the Company assuming that the disposition of the Company's North American Can Operations had occurred as of January 1, 1998. The Operations consisted of 14 can plants, two end plants and a headquarters building. This transaction is already reflected in the balance sheet in the Company's Annual Report on Form 10-K for the year ended December 31, 1998. PRO FORMA ADJUSTMENTS The following notes describe the adjustments found on the accompanying pro forma statement of income: (A) The amounts included in the North American Can Operations' column on the income statement reflects the direct activity of the Operations from January 1, 1998 through August 10, 1998, the date of their disposition. Depreciation expense was not included in the Operations' expenses for the year 1998. In 1998, the Operations were accounted for as an asset held for sale and, as required by current accounting rules, depreciation was stopped. Pretax income has been tax effected at the Company's statutory rate (38%). (B) This pro forma adjustment represents the estimated reduction in interest expense as a result of long-term debt being reduced by $470 million. Interest expense was calculated using the weighted average interest rate (approximately 9%) on the long- term debt expected to be extinguished. (C) This pro forma adjustment eliminates the gain realized on the disposition. (D) Pretax income has been tax effected at the Company's statutory rate (38%). (E) The shares used for pro forma earnings per share reflect $208 million of proceeds being used to repurchase approximately 3,690,000 shares of the Company's common stock.