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REYNOLDS METALS COMPANY REPORTS SECOND QUARTER RESULTS

 RICHMOND, Va., July 16 /PRNewswire/ -- Reynolds Metals Company (NYSE: RLM) today reported a second-quarter loss of $22.8 million, or 38 cents per share. This compares with net income of $25.0 million, or 42 cents per share, in the second quarter of 1992.
 Revenues were $1.36 billion, compared with $1.50 billion in the 1992 second quarter. Shipments of aluminum products were 386,700 metric tons, compared with 393,400 metric tons in 1992.
 For the first six months of the year, Reynolds posted a loss of $55.5 million, or 93 cents per share, compared with net income of $30.2 million, or 51 cents per share before the cumulative effects of accounting changes, which resulted in a loss of $609.4 million, or $10.22 per share, in the 1992 first half.
 Six-month revenues were $2.60 billion, compared with $2.83 billion in 1992. Aluminum shipments were 738,600 metric tons, compared with 727,100 metric tons in 1992.
 "Historically low aluminum ingot prices and their unfavorable effect on fabricated product prices, resulting from the worldwide supply-demand imbalance, continue to have a significant negative impact on Reynolds financial results," said Richard G. Holder, chairman and chief executive officer.
 "On the cost side, we have identified opportunities to exceed our performance improvement target of $250 million pretax on an annualized basis by the end of the year," he said.
 According to Holder, Reynolds performance improvement program is comprised of a variety of efforts to reduce costs and improve quality. The company continues to emphasize improving working capital management through inventory controls and other efforts.
 "While Reynolds has forecast a loss for the year due to current industry conditions, our performance improvements and emphasis on value- added products should position the company for strong growth and earnings potential when the world economy and industry conditions improve," said Holder.
 "Long term, we are very optimistic about global opportunities for the aluminum beverage can, increased use of aluminum in autos and trucks, and growth of aluminum usage in developing countries," he said.
 A tabulation of the company's results follows.
 REYNOLDS METALS COMPANY
 STATEMENT OF CONSOLIDATED INCOME (UNAUDITED)
 Quarter ended Six months ended
 (In millions, except June 30, June 30,
 per share amounts) 1993 1992 1993 1992
 Net sales $1,356.0 $1,489.8 $2,586.7 $2,774.0
 Equity, interest
 and other income 5.5 5.7 11.7 14.9
 Gain on sale
 of investment -- -- -- 36.1
 TOTAL REVENUES 1,361.5 1,495.5 2,598.4 2,825.0
 Cost of products sold 1,194.0 1,257.7 2,282.3 2,345.1
 Selling/administrative/
 general expenses 91.6 91.4 179.2 181.7
 Depreciation and
 amortization 71.7 71.4 142.8 141.5
 Interest expense -
 princially on
 long-term obligations 39.9 42.1 80.9 83.0
 Provision for estimated
 environmental costs -- -- -- 10.0
 Operational restructuring
 and asset revaluation
 costs -- -- -- 21.0
 TOTAL COSTS
 AND EXPENSES 1,397.2 1,462.6 2,685.2 2,782.3
 Income (loss) before
 income taxes and
 cumulative effects of
 accounting changes (35.7) 32.9 (86.8) 42.7
 Taxes on income (credit) (12.9) 7.9 (31.3) 12.5
 Income (loss) before
 cumulative effects of
 accounting changes (22.8) 25.0 (55.5) 30.2
 Cumulative effects of
 accounting changes -- -- -- (639.6)
 NET INCOME (LOSS) $(22.8) $25.0 $(55.5) $(609.4)
 Earnings (Loss)
 Per Common Share
 Average shares
 outstanding 59.8 59.5 59.8 59.5
 Income (loss) before
 cumulative effects of
 accounting changes $(0.38) $0.42 $(0.93) $0.51
 Cumulative effects of
 accounting changes -- -- -- $(10.73)
 Net income (loss) $(0.38) $0.42 $(0.93) $(10.22)
 Cash dividends per
 common share $0.25 $0.45 $0.70 $0.90
 CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
 June 30, Dec. 31,
 (In millions) 1993 1992
 ASSETS
 Current assets
 Cash and short-term investments $84.7 $80.4
 Receivables - net 831.0 797.6
 Inventories 871.9 818.1
 Prepaid expenses 61.5 60.7
 Total current assets 1,849.1 1,756.8
 Unincorporated joint ventures
 and associated companies 818.7 849.8
 Property, plant and equipment 5,955.3 5,902.3
 Less allowances for depreciation
 and amortization 2,795.6 2,692.1
 3,159.7 3,210.2
 Deferred taxes and other assets 1,122.8 1,080.2
 Total assets $6,950.3 $6,897.0
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities
 Accounts payable, accrued and
 other liabilities $831.2 $824.3
 Short-term obligations 235.9 191.2
 Long-term debt 77.3 169.8
 Total current liabilities 1,144.4 1,185.3
 Long-term debt 1,983.4 1,797.7
 Postretirement benefits 1,234.2 1,196.5
 Environmental, deferred taxes
 and other liabilities 642.8 657.5
 Stockholders' equity
 Common stock 753.5 750.2
 Retained earnings 1,250.4 1,347.8
 Cumulative currency translation
 adjustments (22.1) (1.7)
 Pension liability adjustment (36.3) (36.3)
 Total stockholder's equity 1,945.5 2,060.0
 Total liabilities and
 stockholder's equity $6,950.3 $6,897.0
 Shipments and Net Sales
 (Ton in thousands, dollars in millions)
 2nd Quarter
 1993 1992
 Metric Metric
 Tons Amounts Tons Amounts
 Production and processing
 Primary aluminum 73.6 $90.0 70.9 $98.1
 Flat rolled 119.9 286.1 121.2 310.4
 Extruded & drawn 46.8 137.5 49.0 184.1
 Other aluminum 46.8 99.3 48.7 114.2
 Other nonaluminum 73.9 69.8
 Gold 32.2 26.2
 287.1 719.0 289.8 802.8
 Finished products and
 other sales
 Packaging & containers:
 Aluminum 68.8 324.1 76.1 379.2
 Nonaluminum 123.5 132.6
 Other aluminum 30.8 90.5 27.5 84.8
 Other nonaluminum 98.9 90.4
 99.6 637.0 103.6 687.0
 Net sales 386.7 $1,356.0 393.4 $1,489.8
 Revenues per pound
 Primary aluminum $0.55 $0.63
 Fabricated aluminum
 products $1.46 $1.62
 Reynolds Principal Markets
 2Q 93 2Q 93
 Packaging & Containers 44 pct. 45 pct.
 Distributors and Fabricators 13 15
 Architectural, Building and
 Construction 13 12
 Transportation, Aircraft and
 Automotive 12 11
 Electrical 3 5
 Other 15 12
 Total 100 pct. 100 pct.
 Shipments and Net Sales
 (Ton in thousands, dollars in millions)
 Six Months
 1993 1992
 Metric Metric
 Tons Amounts Tons Amounts
 Production and processing
 Primary aluminum 144.2 $179.2 126.3 $169.0
 Flat rolled 232.2 558.4 229.1 598.1
 Extruded & drawn 89.7 263.4 96.7 356.3
 Other aluminum 88.4 187.9 86.6 198.8
 Other nonaluminum 143.0 135.2
 Gold 57.9 50.0
 554.5 1,389.8 538.7 1,507.4
 Finished products and
 other sales
 Packaging & containers:
 Aluminum 124.3 594.8 134.5 677.8
 Nonaluminum 234.9 250.6
 Other aluminum 59.8 174.9 53.9 165.1
 Other nonaluminum 192.3 173.1
 184.1 1,196.9 188.4 1,266.6
 Net sales 738.6 $2,586.7 727.1 $2,774.0
 Revenues per pound
 Primary aluminum $0.56 $0.61
 Fabricated aluminum $1.46 $1.61
 products
 -0- 7/16/93
 /CONTACT: Lou Anne J. Nabhan of Reynolds Metals Company, 804-281-2171 or, after hours, 804-359-2986/
 (RLM)


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

TW -- DC009 -- 2381 07/16/93 10:12 EDT
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Date:Jul 16, 1993
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