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REYNOLDS METALS COMPANY REPORTS FIRST QUARTER RESULTS

 RICHMOND, Va., April 16 /PRNewswire/ -- Reynolds Metals Company (NYSE: RLM) today reported a first-quarter loss of $32.7 million, or 55 cents per share.
 This compares to first-quarter 1992 earnings of $5.2 million, or 9 cents per share, before a one-time charge for accounting changes. After the cumulative effects of adopting FAS 106 and FAS 109, Reynolds had a first-quarter loss of $634.4 million, or $10.64 per share.
 Revenues for the first quarter were $1.24 billion, compared to $1.33 billion in the 1992 first quarter. Aluminum shipments were 351,900 metric tons, compared to 333,700 metric tons in the 1992 first quarter. Higher aluminum shipments are attributable to increased ingot sales.
 "Reynolds first-quarter results reflect a continued supply-demand imbalance in the worldwide aluminum industry. This has been exacerbated by ongoing high levels of ingot exports from the Commonwealth of Independent States, and resulted in primary aluminum prices that have been at historically low levels for well over a year," said Richard G. Holder, chairman and chief executive officer.
 "Low prices from the primary end of the business continue to adversely impact fabricated products. Our first-quarter results, which are historically weak, also were affected by the deepening recession in Europe," Holder added.
 "On the positive side, sales of certain packaging, consumer and non- aluminum products have remained relatively strong during these turbulent times," he said.
 "In addition, we are working to achieve an annualized rate of $250 million in performance improvement, pretax, by the end of 1993. If we reach this goal, it will yield significant benefits in the second half of 1993 and for all of 1994. Combined with our emphasis on value- added products, this effort should leave us well-positioned to participate fully in the long-term growth opportunities that lie ahead.
 "Our outlook for the balance of 1993 is that it will be a difficult year for Reynolds and the aluminum industry. In the second quarter, stronger product mix and volume should provide some improvement in results over the first quarter," said Holder.
 Following is a tabulation of the company's results, which has been expanded to provide additional information on product shipments and markets, and a condensed balance sheet. The expanded quarterly product shipments and market data for 1992 also is provided.
 REYNOLDS METALS COMPANY
 Quarter Ended
 March 31
 (In millions, except
 per share amounts) 1993 1992
 Net sales $1,230.7 $1,284.2
 Equity, interest
 and other income 6.2 9.2
 Gain on sale
 of investment -- 36.1
 TOTAL REVENUES 1,236.9 1,329.5
 Cost of products sold 1,088.3 1,087.4
 Selling/administrative/
 general expenses 87.6 90.3
 Depreciation and
 amortization 71.1 70.1
 Interest expense 41.0 40.9
 Provision for estimated
 environmental costs -- 10.0
 Operational restructuring
 and asset revaluation
 costs -- 21.0
 TOTAL COSTS AND
 EXPENSES 1,288.0 1,319.7
 Income (loss) before
 income taxes and
 cumulative effects of
 accounting changes (51.1) 9.8
 Taxes on income (credit) (18.4) 4.6
 Income (loss) before
 cumulative effects of
 accounting changes (32.7) 5.2
 Cumulative effects of
 accounting changes -- (639.6)
 NET LOSS $(32.7) $(634.4)
 Earnings (Loss)
 Per Common Share
 Average shares
 outstanding $59.8 59.5
 Income (loss) before
 cumulative effects of
 accounting changes $(0.55) $0.09
 Cumulative effects of
 accounting changes -- $(10.73)
 Net loss $(0.55) $(10.64)
 Cash dividends per
 common share $0.45 $0.45
 CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
 Reynolds Metals Company
 March 31, Dec. 31,
 (In millions) 1993 1992
 ASSETS
 Current assets
 Cash and short-term investments $93.3 $80.4
 Receivables - net 813.1 797.6
 Inventories 875.3 818.1
 Prepaid expenses 60.2 60.7
 Total current assets 1,841.9 1,756.8
 Unincorporated joint ventures
 and associated companies 832.3 849.8
 Property, plant and equipment
 -net 3,184.7 3,210.2
 Deferred taxes and other assets 1,094.9 1,080.2
 Total assets $6,953.8 $6,897.0
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
 Accounts payable, accrued and
 other liabilities $810.0 $824.3
 Short-term obligations 285.9 191.2
 Long-term debt 185.4 169.8
 Total current liabilities 1,281.3 1,185.3
 Long-term debt 1,821.8 1,797.7
 Postretirement benefits 1,203.2 1,196.5
 Environmental, deferred taxes
 and other liabilities 667.4 657.5
 Stockholders' equity 1,980.1 2,060.0
 Total liabilities and stockholders'
 equity $6,953.8 $6,897.0
 Shipments and Net Sales
 (Tons in thousands, dollars in millions)
 1st Quarter
 1993 1992
 Metric Metric
 Tons Amounts Tons Amounts
 Production and processing
 Primary aluminum 70.6 $89.2 55.4 $70.9
 Flat rolled 112.3 272.3 107.9 287.7
 Extruded & drawn 42.9 125.9 47.7 172.2
 Other aluminum 41.6 88.6 37.9 84.6
 Other nonaluminum 69.1 65.4
 Gold 25.7 23.8
 Total 267.4 670.8 248.9 704.6
 Finished products and
 other sales
 Packaging & containers:
 Aluminum 55.5 270.7 58.4 298.6
 Nonaluminum 111.4 118.0
 Other aluminum 29.0 84.4 26.4 80.3
 Other nonaluminum 93.4 82.7
 Total 84.5 559.9 84.8 579.6
 Net sales 351.9 $1,230.7 333.7 $1,284.2
 Revenues per pound
 Primary aluminum $0.57 $0.58
 Fabricated aluminum
 products $1.46 $1.61
 Reynolds Principal Markets
 1Q93 1Q92
 Packaging & Containers 42 pct. 44 pct.
 Distributors and Fabricators 18 17
 Architectural, Building and
 Construction 10 11
 Transportation, Aircraft and
 Automotive 12 11
 Electrical 3 6
 Other 15 11
 Total 100 pct. 100 pct.
 Shipments and Net Sales
 (Tons in thousands, dollars in millions)
 1992 1st Qtr 2nd Qtr
 Metric Metric
 Tons Amounts Tons Amounts
 Production and processing
 Primary aluminum 55.4 $70.9 70.9 $98.1
 Flat rolled 107.9 287.7 121.2 310.4
 Extruded & drawn 47.7 172.2 49.0 184.1
 Other aluminum 37.9 84.6 48.7 114.2
 Other nonaluminum 65.4 69.8
 Gold 23.8 26.2
 Total 248.9 704.6 289.8 802.8
 Finished products and
 other sales
 Packaging & containers:
 Aluminum 58.4 298.6 76.1 379.2
 Nonaluminum 118.0 132.6
 Other aluminum 26.4 80.3 27.5 84.8
 Other nonaluminum 82.7 90.4
 Total 84.8 579.6 103.6 687.0
 Net sales 333.7 $1,284.2 393.4 $1,489.8
 Revenues per pound
 Primary aluminum $0.58 $0.63
 Fabricated aluminum
 products $1.61 $1.62
 Shipments and Net Sales
 (Tons in thousands, dollars in millions)
 1992 3rd Qtr 4th Qtr
 Metric Metric
 Tons Amounts Tons Amounts
 Production and processing
 Primary aluminum 75.7 $102.9 73.2 $92.5
 Flat rolled 113.4 295.3 113.1 294.0
 Extruded & drawn 50.1 192.5 42.4 134.6
 Other aluminum 50.3 110.4 37.8 89.2
 Other nonaluminum 74.7 68.7
 Gold 26.0 22.2
 Total 289.5 801.8 266.5 701.2
 Finished products and
 other sales
 Packaging & containers:
 Aluminum 69.1 353.3 64.7 326.1
 Nonaluminum 130.0 142.0
 Other aluminum 29.7 92.1 27.5 82.7
 Other nonaluminum 95.7 93.7
 Total 98.8 671.1 92.2 644.5
 Net sales 388.3 $1,472.9 358.7 $1,345.7
 Revenues per pound
 Primary aluminum $0.62 $0.57
 Fabricated aluminum
 products $1.64 $1.56
 Reynolds Principal Markets
 1992 1Q 2Q 3Q 4Q YR
 Packaging & Containers 44 pct. 45 pct. 44 pct. 46 pct. 45 pct.
 Distributors and Fabricators 17 15 15 16 15
 Architectural, Building and
 Construction 11 12 13 12 12
 Transportation, Aircraft and
 Automotive 11 11 10 11 11
 Electrical 6 5 5 3 5
 Other 11 12 13 12 12
 Total 100 pct. 100 pct. 100 pct. 100 pct. 100 pct.
 -0- 4/16/93
 /CONTACT: Lou Anne J. Nabhan of Reynolds Metals Company, 804-281-2965 or, after hours, 804-359-2986/
 (RLM)


CO: Reynolds Metals Company ST: Virginia IN: MNG SU: ERN

DC-TW -- DC026 -- 6882 04/16/93 15:30 EDT
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Date:Apr 16, 1993
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