-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LUh1YA3LJ+GtzQrwVrikW/DA1gtJmH3I5BU2RpDxYKiwH3oH10vUIYe9iMpGCdRT JeJHYxtXbV2ZLbl2iSTR8g== 0000083604-97-000012.txt : 19970814 0000083604-97-000012.hdr.sgml : 19970814 ACCESSION NUMBER: 0000083604-97-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970813 SROS: CSX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: REYNOLDS METALS CO CENTRAL INDEX KEY: 0000083604 STANDARD INDUSTRIAL CLASSIFICATION: PRIMARY PRODUCTION OF ALUMINUM [3334] IRS NUMBER: 540355135 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-01430 FILM NUMBER: 97658009 BUSINESS ADDRESS: STREET 1: 6601 W BROAD ST STREET 2: PO BOX 27003 CITY: RICHMOND STATE: VA ZIP: 23261 BUSINESS PHONE: 8042812000 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-1430 REYNOLDS METALS COMPANY A Delaware Corporation (I.R.S. Employer Identification No. 54-0355135) 6601 West Broad Street, P. O. Box 27003, Richmond, Virginia 23261-7003 Telephone Number (804) 281-2000 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No ___ As of July 31, 1997, the Registrant had 73,725,894 shares of Common Stock, no par value, outstanding and entitled to vote. PART I - FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) - -------------------------------------------------------------------------------------------------------- Reynolds Metals Company
Quarters ended Six months ended June 30 June 30 - -------------------------------------------------------------------------------------------------------- (In millions, except per share amounts) 1997 1996 1997 1996 - -------------------------------------------------------------------------------------------------------- Revenues Net sales $1,783 $1,823 $3,398 $3,485 Equity, interest and other income 3 12 12 25 - -------------------------------------------------------------------------------------------------------- 1,786 1,835 3,410 3,510 - -------------------------------------------------------------------------------------------------------- Costs and expenses Cost of products sold 1,463 1,508 2,823 2,878 Selling, administrative and general expenses 107 105 209 216 Depreciation and amortization 92 91 185 181 Interest 37 42 76 84 Operational restructuring effects - net 7 - (31) 37 - -------------------------------------------------------------------------------------------------------- 1,706 1,746 3,262 3,396 - -------------------------------------------------------------------------------------------------------- Income before income taxes and cumulative effect of accounting change 80 89 148 114 Taxes on income 25 29 50 37 - -------------------------------------------------------------------------------------------------------- Income before cumulative effect of accounting change 55 60 98 77 Cumulative effect of accounting change - - - (15) - -------------------------------------------------------------------------------------------------------- Net income 55 60 98 62 Preferred stock dividends - 9 - 18 - -------------------------------------------------------------------------------------------------------- Net income available to common stockholders $ 55 $ 51 $ 98 $ 44 ======================================================================================================== Earnings per share Average shares outstanding 73 64 73 64 Income before cumulative effect of accounting change $0.76 $0.81 $1.35 $0.93 Cumulative effect of accounting change - - - (0.24) - -------------------------------------------------------------------------------------------------------- Net income $0.76 $0.81 $1.35 $0.69 ======================================================================================================== Cash dividends per common share $0.35 $0.35 $0.70 $0.70 ========================================================================================================
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) - ------------------------------------------------------------------------------------------- Reynolds Metals Company
June 30 December 31 - ------------------------------------------------------------------------------------------- (millions) 1997 1996 - ------------------------------------------------------------------------------------------- ASSETS Current assets Cash and cash equivalents $ 22 $ 38 Receivables, less allowances of $18 (1996 - $18) 1,102 961 Inventories 791 787 Prepaid expenses and other 94 87 - ------------------------------------------------------------------------------------------- Total current assets 2,009 1,873 Unincorporated joint ventures and associated companies 1,334 1,337 Property, plant and equipment 6,641 6,813 Less allowances for depreciation and amortization 3,548 3,576 - ------------------------------------------------------------------------------------------- 3,093 3,237 Deferred taxes and other assets 1,043 1,069 - ------------------------------------------------------------------------------------------- Total assets $7,479 $7,516 =========================================================================================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable, accrued and other liabilities $1,015 $1,020 Short-term borrowings 173 217 Long-term debt 104 96 - ------------------------------------------------------------------------------------------- Total current liabilities 1,292 1,333 Long-term debt 1,768 1,793 Postretirement benefits 1,069 1,087 Environmental, deferred taxes and other liabilities 663 669 Stockholders' equity Common stock 1,489 1,451 Retained earnings 1,267 1,220 Cumulative currency translation adjustments (69) (37) - ------------------------------------------------------------------------------------------- Total stockholders' equity 2,687 2,634 - ------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $7,479 $7,516 ===========================================================================================
CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) - ------------------------------------------------------------------------------------------- Reynolds Metals Company
Six Months Ended June 30 - --------------------------------------------------------------------------------------------------- (millions) 1997 1996 - --------------------------------------------------------------------------------------------------- Operating activities Net Income $ 98 $ 62 Adjustments to reconcile to net cash provided by (used in) operating activities: Depreciation and amortization 185 181 Operational restructuring effects - net (31) 37 Cumulative effect of accounting change - 15 Changes in operating assets and liabilities net of effects of dispositions: Accounts payable, accrued and other liabilities 2 (89) Receivables (234) (71) Inventories (123) (10) Other (6) (118) - --------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities (109) 7 Investing activities Capital investments: Operational (65) (89) Strategic (65) (140) Proceeds from sale of assets 291 7 Other (5) (13) - --------------------------------------------------------------------------------------------------- Net cash provided by (used in) investing activities 156 (235) Financing activities Increase (decrease) in borrowings (principally short-term) (51) 276 Cash dividends paid (48) (63) Stock issues and other 36 3 - --------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities (63) 216 Cash and cash equivalents Net decrease (16) (12) At beginning of period 38 39 - --------------------------------------------------------------------------------------------------- At end of period $ 22 $ 27 ===================================================================================================
REYNOLDS METALS COMPANY AND CONSOLIDATED SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Quarters and Six Months Ended June 30, 1997 and 1996 NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements were prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the interim periods of 1997 are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 1996. Certain amounts were reclassified to conform to the 1997 presentation. NOTE 2. OPERATIONAL RESTRUCTURING The Company is conducting a review of all its operations and businesses. A number of alternatives are being considered including, among other things, asset sales, spin-offs, and the forming of strategic alliances to increase scale. Certain actions, if taken, could affect the Company's results and ongoing operating performance. In the first quarter of 1997, the Company sold its U.S. residential construction products business. In the second quarter of 1997, the Company sold the following assets: * an aluminum reclamation plant in Virginia * aluminum extrusion plants in Virginia and Texas * coal properties in Kentucky The Company recognized pre-tax gains of $38 million in the first quarter of 1997 and $18 million in the second quarter of 1997 related to these sales. Proceeds from these sales were used to reduce debt and to temporarily support operating requirements. Also in the second quarter, the Company recorded a pre-tax charge of $25 million for termination benefits applicable to approximately 500 corporate headquarters employees. Another 100 positions are being reduced through attrition. Most of the cash requirements relating to the termination benefits are expected to be paid in 1997. The Company has also signed non-binding letters of intent to sell the following: * a rolling mill and related assets in Alabama (with an estimated after-tax loss in the range of $225 to $250 million, a substantial portion of which relates to employee termination costs) * an aluminum powder and paste plant in Kentucky * one-half of its wholly owned interest in a rolling mill and related assets in Canada These transactions are subject to regulatory and board approvals (in certain cases), negotiation and execution of definitive agreements, and other customary closing conditions. The Company hopes to complete these transactions in the second half of 1997. NOTE 3. EARNINGS PER SHARE In the first quarter of 1997, the Financial Accounting Standards Board issued Statement No. 128, "Earnings Per Share". Statement No. 128 requires a change in the method currently used to calculate earnings per share (EPS). The change eliminates the presentation of primary EPS and requires the presentation of basic EPS. The principal difference between these methods is that common stock equivalents are not considered in the computation of basic EPS. The statement also requires the presentation of diluted EPS. Diluted EPS reflects the potential dilution that could occur if securities, or other contracts to issue common stock, were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The Company is required to adopt this statement beginning with its 1997 fourth quarter and year-end financial statements, at which time all prior period EPS presentations will be restated. The adoption will not have a material impact on EPS amounts reported for the current interim periods or any prior periods. NOTE 4. CONTINGENT LIABILITIES As previously disclosed in the Company's 1996 Form 10-K, the Company is involved in various worldwide environmental improvement activities resulting from past operations, including designation as a potentially responsible party (PRP), with others, at various Environmental Protection Agency-designated Superfund sites. The Company has recorded amounts (on an undiscounted basis) which, in management's best estimate, are expected to be sufficient to satisfy anticipated costs of known remediation requirements. Estimated costs for future environmental compliance and remediation are necessarily imprecise because of factors such as: * continuing evolution of environmental laws and regulatory requirements * availability and application of technology * identification of presently unknown remediation requirements * cost allocations among PRPs Further, it is not possible to predict the amount or timing of future costs of environmental remediation that may subsequently be determined. Based on information presently available, such future costs are not expected to have a material adverse effect on the Company's competitive or financial position or its ongoing results of operations. However, such costs could be material to results of operations in a future interim or annual reporting period. NOTE 5. CANADIAN REYNOLDS METALS COMPANY, LTD. AND REYNOLDS ALUMINUM COMPANY OF CANADA, LTD. Financial statements and financial statement schedules for Canadian Reynolds Metals Company, Ltd. and Reynolds Aluminum Company of Canada, Ltd. have been omitted because certain securities registered under the Securities Act of 1933, of which these entities are obligors (thus subjecting them to reporting requirements under Section 13 or 15(d) of the Securities Exchange Act of 1934), are fully and unconditionally guaranteed by Reynolds Metals Company. Financial information relating to these companies is presented herein in accordance with Staff Accounting Bulletin 53 as an addition to the footnotes to the financial statements of Reynolds Metals Company. Summarized financial information is as follows: NOTE 5. CANADIAN REYNOLDS METALS COMPANY, LTD. AND REYNOLDS ALUMINUM COMPANY OF CANADA, LTD. -- continued Canadian Reynolds Metals Company, Ltd.
Quarters Ended June 30 Six Months Ended June 30 ---------------------------------------------------- 1997 1996 1997 1996 ---------------------------------------------------- Net Sales: Customers $ 55 $ 58 $ 99 $106 Parent and related companies 170 154 360 323 ---------------------------------------------------- $225 $212 $459 $429 Cost of products sold 174 179 362 333 Net income $ 26 $ 15 $ 55 $ 52
June 30 December 31 1997 1996 ------------------------------- Current assets $ 250 $ 189 Noncurrent assets 1,183 1,225 Current liabilities (61) (50) Noncurrent liabilities (626) (624)
Reynolds Aluminum Company of Canada, Ltd.
Quarters Ended June 30 Six Months Ended June 30 --------------------------------------------------- 1997 1996 1997 1996 --------------------------------------------------- Net Sales: Customers $139 $142 $258 $259 Parent and related companies 159 134 335 277 --------------------------------------------------- $298 $276 $593 $536 Cost of products sold 237 237 481 436 Net income $ 30 $ 15 $ 57 $ 47
June 30 December 31 1997 1996 Current assets $ 351 $ 240 Noncurrent assets 1,334 1,370 Current liabilities (151) (95) Noncurrent liabilities (668) (656)
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following information should be read in conjunction with the consolidated financial statements and related footnotes included in the Company's 1996 Form 10-K along with the consolidated financial statements and related footnotes included in and referred to in this report. In the tables, dollars are in millions, except per share and per pound amounts, and shipments are in thousands of metric tons. A metric ton is equivalent to 2,205 pounds. Management's Discussion and Analysis contains forecasts, projections, estimates, statements of management's plans and objectives for the Company and other forward-looking statements. Please refer to the "Risk Factors" section beginning on page 15, where we have summarized factors that could cause actual results to differ materially from those projected in a forward- looking statement or affect the extent to which a particular projection is realized. RESULTS OF OPERATIONS In the second quarter and six months of 1997, lower prices for aluminum fabricated products were offset by higher sales volume in our distribution, wheels, can and packaging businesses and progress in our performance improvement program.
Second Quarter Six Months 1997 1996 1997 1996 ----------------------------------------- Net income $55 $60 $98 $62 Special items included in net income: Operational restructuring effects -- net (4) - 19 (23) Cumulative effect of accounting change - - - (15) Earnings per share $0.76 $0.81 $1.35 $0.69 Special items included in earnings per share: Operational restructuring effects -- net (.05) - .27 (.36) Cumulative effect of accounting change - - - (.24)
Operational restructuring effects resulted from: * the sale of U.S. residential construction products business in the first quarter of 1997 resulting in an after-tax gain of $23 million ($.32 per share) * the sale of an aluminum reclamation plant, two aluminum extrusion plants and coal properties in the second quarter of 1997 resulting in an after-tax gain of $11 million ($.16 per share) * a charge in the second quarter of 1997 for termination benefits for approximately 500 corporate headquarters employees resulting in an after-tax charge of $15 million ($.21 per share) * a charge in the first quarter of 1996 principally for employee termination benefits associated with the closing of a can plant in Texas The accounting change resulted from adopting a new accounting standard in the first quarter of 1996 that required us to recognize a loss for impaired assets held for sale, principally undeveloped land. RESULTS OF OPERATIONS -- continued SHIPMENTS AND NET SALES
Second Quarter ------------------------------------------------ 1997 1996 ------------------------------------------------ Shipments Net Sales Shipments Net Sales ------------------------------------------------ Finished Products and Other Sales Packaging and containers Aluminum 106 $ 543 96 $ 502 Nonaluminum 138 149 Other aluminum 37 117 41 142 Other nonaluminum 106 139 ------------------------------------------------ 143 904 137 932 ------------------------------------------------ Production and Processing Primary aluminum 101 182 100 171 Sheet and plate 100 292 100 305 Extrusions 56 190 52 180 Other aluminum 32 112 43 127 Other nonaluminum 103 108 ------------------------------------------------ 289 879 295 891 ------------------------------------------------ Total 432 $1,783 432 $1,823 ================================================ Average realized price per pound: Fabricated aluminum products $1.76 $1.81 Primary aluminum $0.82 $0.77
Six Months --------------------------------------------- 1997 1996 --------------------------------------------- Shipments Net Sales Shipments Net Sales --------------------------------------------- Finished Products and Other Sales Packaging and containers Aluminum 191 $ 978 179 $ 940 Nonaluminum 270 279 Other aluminum 71 225 79 275 Other nonaluminum 198 266 --------------------------------------------- 262 1,671 258 1,760 --------------------------------------------- Production and Processing Primary aluminum 184 328 181 313 Sheet and plate 195 569 191 597 Extrusions 108 359 103 358 Other aluminum 73 236 82 240 Other nonaluminum 235 217 --------------------------------------------- 560 1,727 557 1,725 --------------------------------------------- Total 822 $3,398 815 $3,485 ============================================= Average realized price per pound: Fabricated aluminum products $1.74 $1.82 Primary aluminum $0.81 $0.78
RESULTS OF OPERATIONS -- continued SHIPMENTS AND NET SALES -- continued Finished Products and Other Sales Shipments of aluminum packaging and containers (measured in metric tons of aluminum) improved in both periods primarily as a result of higher can shipments. Can shipments were up 13% in the second quarter and 7% for the first six months of 1997 as compared to the same periods of 1996. Customer growth and the addition of several soft drink accounts were the major factors in the improved shipping levels. In addition to cans, shipments of packaging and consumer products also improved in each of the 1997 periods (second quarter - up 8%, six months - up 6%) due to strong demand. Net sales of aluminum packaging and containers improved primarily on the higher volume of shipments for both 1997 periods. Prices were lower for cans in both 1997 periods and were relatively stable for packaging and consumer products. The reduction in nonaluminum revenues was due to lower sales of can machinery and tolling services. Shipments of other aluminum dropped because of the sale of our U.S. residential construction products business in the first quarter of 1997. A strong increase in shipments of aluminum distribution products for both 1997 periods (second quarter - up 13%, six months - up 12%) helped reduce the effect of the sale of the construction products business. Shipments of aluminum distribution products strengthened because of improved economic conditions and milder weather conditions in 1997 compared to the severe winter conditions in early 1996. Net sales of other aluminum and other nonaluminum products were lower for both 1997 periods because we sold our U.S. residential construction products business. Lower net sales of stainless steel distribution products were also realized in each period due to declining prices. Production and Processing Primary aluminum shipments fluctuate from period to period because of variations in internal requirements and changes in customer demand for value-added foundry ingot and billet. Improved prices for primary aluminum in 1997 resulted from strong demand and a lowering of worldwide aluminum inventories. For fabricated products, shipments (measured in metric tons of aluminum) were higher in both 1997 periods for aluminum sheet and extrusions at European operations and aluminum wheels and plate. The increases in shipments at European operations reflect improvements in the European economy. The increases in aluminum wheel shipments (second quarter - up 20%, six months - up 28%) were due to strong demand. Aluminum plate shipments were higher because of strong demand for tooling plate and improvements in the aircraft industry. These volume increases were offset by the effects of selling a construction products aluminum sheet plant and an aluminum reclamation plant. Lower prices for most fabricated aluminum products and the effects of foreign currency translation adversely impacted net sales. The translation effects were caused by the strengthening of the U.S. dollar against European currencies. Nonaluminum revenues were slightly lower in the second quarter of 1997 because of lower demand for alumina. Nonaluminum revenues were higher in the six-month period of 1997 because of increased technology sales. RESULTS OF OPERATIONS -- continued EQUITY, INTEREST AND OTHER INCOME The decline in this category of revenue in both 1997 periods was due to lower amounts of equity income. Equity income was lower because of increased competition for can operations in Latin America and losses relating to the start-up of a Chinese foil and extrusion operation. COSTS AND EXPENSES Cost of products sold decreased in both 1997 periods because of: * lower costs for certain purchased materials * improved capacity utilization at fabricating facilities * divestitures * performance improvement programs * the effects of translating European currencies These benefits were somewhat offset by higher costs for labor. Labor costs were higher because of new contracts entered into in the second quarter of 1996. Interest expense decreased in both 1997 periods because of lower amounts of debt outstanding. On a quarterly basis, the Company updates the status of all significant existing or potential environmental issues, develops or revises estimates of costs to satisfy known remediation requirements and adjusts its accruals accordingly. Based on information presently available, such future costs are not expected to have a material adverse effect on our competitive or financial position or our ongoing results of operations. However, it is not possible to predict the amount or timing of future costs of environmental requirements that may subsequently be determined. Such costs could be material to future quarterly or annual results of operations. Various suits and claims are pending against the Company. In the opinion of management, after consultation with counsel, disposition of these suits and claims, either individually or in the aggregate, will not have a material adverse effect on our competitive or financial position or our ongoing results of operations. No assurance can be given, however, that the disposition of one or more of such suits or claims in a particular reporting period will not be material in relation to the reported results for such period. TAXES ON INCOME The effective tax rates reflected in the income statement differ from the U.S. federal statutory rate because of foreign taxes and the effects of percentage depletion allowances. LIQUIDITY AND CAPITAL RESOURCES WORKING CAPITAL
June 30 December 31 1997 1996 ------------------------ Working capital $717 $540 Ratio of current assets to current liabilities 1.6/1 1.4/1
LIQUIDITY AND CAPITAL RESOURCES -- continued OPERATING ACTIVITIES Cash from operations was supplemented with cash provided by investing activities to fund receivables and inventories. The increase in receivables reflects higher sales activity. Inventories increased in anticipation of continuing strong shipping volumes. INVESTING ACTIVITIES Cash provided by investing activities resulted from the sale of assets. Capital investments totaled $130 million in the first six months of 1997. This amount includes $65 million for operating requirements (replacement equipment, environmental control projects, etc.). The remainder was for strategic projects carried forward from 1996, including: * the construction of a forged wheel plant in Virginia * the expansion and modernization of can, foil and plastic film plants * the modernization of a primary aluminum plant in New York FINANCING ACTIVITIES Debt was reduced with part of the proceeds from the sale of assets. The Company extended the terms of its $150 million Canadian bank credit agreement to 2001. The agreement was originally scheduled to mature in early 1998. The Company believes its available financial resources, together with internally generated funds, are sufficient to meet its present and future business needs. The Company continues to exceed the financial ratio requirements contained in its financing arrangements and expects to do so in the future. At June 30, 1997, $113 million of the Company's $1.65- billion shelf registration remained available for the issuance of debt securities. PORTFOLIO REVIEW We are conducting a review of all our operations and businesses with the goals of improving focus and profitability, strengthening our financial position, and thereby increasing shareholder value. The results of this review are expected to improve the quality of earnings in the years ahead during all parts of the business cycle. Major elements of the review are as follows: PORTFOLIO REVIEW -- continued Restructure We have decided to stay in our bauxite, alumina, carbon products and primary aluminum businesses because of their competitive cost bases. We will keep and grow our distribution, specialty building products, and aluminum wheel businesses. We have determined that certain operations would not earn an adequate return through the business cycle and therefore have decided to take the following actions: * We have exited the U.S. residential construction products business. * We have completed the sale of two U.S. extrusion plants, are in the process of selling our aluminum powder and paste plant in Kentucky, and are pursuing alternatives for our extrusion operations in Canada and Spain. * With respect to our rolling operations, we have signed a letter of intent to sell our Alabama can stock complex (with an estimated after- tax loss in the range of $225 to $250 million). We are in discussions with several potential buyers regarding the sale of our Illinois sheet and plate plant. We are pursuing a number of alternatives for our European rolling operations. * We recently announced plans to form a 50-50 joint venture to operate and expand our rolling mill in Quebec, Canada and to operate our coil coating facility in Ontario, Canada. The rolling mill is a supplier of finstock to the automotive market and foil to the packaging market. * We have also sold an aluminum reclamation plant in Virginia and our coal properties in Kentucky. We have not yet reached a decision about our can and packaging businesses and are considering three options: * Spin-off cans and packaging together * Spin-off one business or the other * Sell a portion of these businesses Keeping all of these businesses is not an option we are considering. Reorganize We have reorganized the Company to streamline our business to focus on global markets that hold the most promising opportunities for profitable growth. The result of these changes was the formation of the following six worldwide, market-focused businesses: * Bauxite and Alumina * Metals and Carbon Products * Construction and Distribution * Transportation * Cans * Packaging and Consumer PORTFOLIO REVIEW -- continued Reorganize -- continued In addition, we have formed a new unit that will focus on emerging markets, such as China, Russia and India. Our reorganization has resulted in personnel reductions in various operational and staff functions at our corporate headquarters. The number of positions involved is approximately 600, which includes 100 positions that are being reduced through attrition. As a result, we expect to reduce corporate overhead costs by approximately $40 million annually. Strengthen Balance Sheet In addition to improving our future earnings potential, our actions will enable us to strengthen our balance sheet. We plan to use a portion of the anticipated proceeds from asset sales to reduce debt. This should result in a reduction in our annual interest expense and an improvement in our debt-to-equity ratio. We expect to be in an excellent position to fund future growth and to explore other methods of improving our financial position, such as stock repurchases, that were not in our reach before. We will continue our unrelenting focus on cost and inventory control. Our ultimate inventory reduction goal is $300 million by 1999, and we have achieved about one-half of it. Over the next several years, we are committed to a capital spending program of $250 million to $300 million average per year, excluding acquisitions. In 1997, we plan to spend approximately $300 million. Approximately 65% of this amount is for operating requirements. The remainder is for continuing expenditures for those performance improvement and strategic investment projects already underway. We expect to fund capital investments in 1997 primarily with cash generated from operations. Grow We have begun a strategic planning process designed to establish future growth programs. There are several excellent investment opportunities currently available to us. These include a significant expansion program at our alumina refinery in Australia, additional investment in our wheel business, and several projects in our packaging business. While we have no current plans to invest in any major greenfield expansions of our smelting business, there will be opportunities for high-return cost reduction projects in our plants. In addition to these internal opportunities, we will be looking for high- return acquisition projects in several of our businesses. One focus will be to participate in the ongoing consolidation of the metals distribution industry. Additionally, we will look for opportunities to grow the packaging business through U.S. and foreign acquisitions. Conclusion and Outlook The results of these actions are expected to contribute to earnings this year and should have an even greater impact in 1998. We expect to enter 1998 a dramatically improved company, repositioned for growth, against a backdrop of strong industry fundamentals. RISK FACTORS This section should be read in conjunction with Part I, Items 1 (Business), 3 (Legal Proceedings) and 7 (Management's Discussion and Analysis of Financial Condition and Results of Operations) of the Company's 1996 Form 10-K; Part II, Item 1 (Legal Proceedings) of this report; and the preceding portions of this Item. This report contains (and oral communications made by or on behalf of the Company may contain) forecasts, projections, estimates, statements of management's plans and objectives for the Company and other forward-looking statements(1). The Company's expectations for the future and related forward-looking statements are based on a number of assumptions and forecasts as to world economic growth and other economic indicators (including rates of inflation, industrial production, housing starts and light vehicle sales), trends in the Company's key markets, global aluminum supply and demand conditions, and aluminum ingot prices, among other items. By their nature, forward-looking statements involve risk and uncertainty, and various factors could cause the Company's actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Consensus expectations for 1997 indicate global economic growth of 3%. The Company is forecasting a 4-5% increase in U.S. aluminum industry shipments and a 5-6% increase in global aluminum consumption for the year, with especially strong transportation and packaging markets. The Company is forecasting the worldwide supply of aluminum to grow 3-3.5% in 1997. Barring a recession in any major world economy, the Company expects these improved conditions in aluminum industry supply/demand fundamentals to continue for the next several years. The Company's outlook for growth in aluminum consumption for the remainder of this decade is an average of 4% per year. The Company expects greater use of aluminum around the world in automobiles and other light vehicles. The Company also expects U.S. aluminum beverage can shipments to grow at about 2% per year (2-3% in 1997) and global shipments to grow 5% annually, with rapid growth of the aluminum beverage can market in Latin America, Asia, the Middle East and other developing economies. Economic and/or market conditions other than as forecast by the Company in the preceding paragraph, particularly in the U.S., Japan and Germany (which are large consumers of aluminum) and in Latin America, could cause the Company's actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. The following factors also could affect the Company's results: * Primary aluminum is an internationally traded commodity. The price of primary aluminum is subject to worldwide market forces of supply and demand and other influences. Prices can be volatile. The Company's use of contractual arrangements including fixed-price sales contracts, fixed-price supply contracts, and forward, futures and option contracts, reduces its exposure to this volatility but does not eliminate it. __________________ (1) Forward-looking statements can be identified generally as those containing words such as "should", "forecast", "project", "estimate", "expect", "anticipate" or "plan" and words of similar effect. RISK FACTORS -- continued * The markets for most aluminum products are highly competitive. Certain of the Company's competitors are larger than the Company in terms of total assets and operations and have greater financial resources. Certain foreign governments are involved in the operation and/or ownership of certain competitors and may be motivated by political, as well as economic considerations. In addition, aluminum competes with other materials, such as steel, vinyl, plastics and glass, among others, for various applications in the Company's key markets. Unanticipated actions or developments by or affecting the Company's competitors and/or the willingness of customers to accept substitutions for the products sold by the Company could affect results. * The Company spends substantial capital and operating amounts relating to ongoing compliance with environmental laws. In addition, the Company is involved in remedial investigations and actions in connection with past disposal of wastes. Estimating future environmental compliance and remediation costs is imprecise due to the continuing evolution of environmental laws and regulatory requirements and uncertainties about their application to the Company's operations, the availability and application of technology, the identification of currently unknown remediation sites, and the allocation of costs among potentially responsible parties. * Unanticipated material legal proceedings or investigations, or the disposition of those currently pending against the Company other than as anticipated by management and counsel, could affect the Company's results. * Changes in the costs of power, resins, caustic soda, green coke and other raw materials can affect results. The Company's contract with the Bonneville Power Administration for the period October 1996 - September 2001 provides fixed rates for electrical power that are 16% less than rates previously in effect for the Company's Washington and Oregon primary aluminum production plants. These rates are subject to regulatory review and approval. In addition, third parties are challenging the contract in court, and the rates are subject to further appeal in the courts by third parties following regulatory review. * The Company's key transportation market is cyclical, and sales to that market in particular can be influenced by economic conditions. * A strike at a customer facility or a significant downturn in the business of a key customer supplied by the Company could affect the Company's results. RISK FACTORS -- continued * The Company is conducting a portfolio review of all its operations and businesses. The Company is considering alternatives that include, among other things, asset sales, spin-offs and formation of strategic alliances. In connection with the portfolio review, the Company has announced the signing of a letter of intent for the sale of its Sheffield, Alabama rolling mill and related assets and its Louisville, Kentucky aluminum powder and paste plant, and an agreement in principle to form a joint venture to operate its Cap-de-la-Madeleine, Quebec, rolling mill and its Toronto, Ontario, coil coating facility. These pending transactions are subject to certain conditions, including due diligence reviews by the purchasers and joint venture partner, respectively, negotiation of definitive agreements and obtaining regulatory approvals and third party consents. As a result, the transactions may or may not be completed as contemplated. In addition, the Company is in discussions with potential buyers regarding the sale of its McCook, Illinois sheet and plate plant, and is pursuing a number of alternatives for its European rolling operations and its extrusion operations in Canada and Spain. Whether and when these transactions will be completed is not certain. The Company is considering three options with respect to its can and packaging businesses: (1) spin off the two businesses together; (2) spin off one business or the other; or (3) sell a portion of the two businesses. The timing, nature and magnitude of the option that will be chosen are not certain and could affect the Company's results and ongoing operating performance. In addition to the factors referred to above, the Company is exposed to general financial, political, economic and business risks in connection with its worldwide operations. The Company continues to evaluate and manage its operations in a manner to mitigate the effects from exposure to such risks. In general, the Company's expectations for the future are based on the assumption that conditions relating to costs, currency values, competition and the legal, regulatory, financial, political and business environments in the economies and markets in which the Company operates will not change significantly overall. PART II - OTHER INFORMATION Item 1. LEGAL PROCEEDINGS As previously reported in the Registrant's 1996 Form 10-K, an oil tank failed at the Registrant's Massena, New York primary aluminum production plant in December 1995, resulting in an oil spill at the plant. On July 8, 1997, the Registrant paid to the New York Department of Environmental Conservation a $100,000 civil penalty for failing to comply with State tank management regulations, resolving the Registrant's liability in connection with the matter. Item 2. CHANGES IN SECURITIES (a) Recent Sales of Unregistered Securities Under the Registrant's Stock Plan for Outside Directors (the "Plan"), 71.529 phantom shares, in the aggregate, were granted to eight of the Registrant's nine outside Directors on April 1, 1997, based on an average price of $63.25 per share. These phantom shares represent dividend equivalents paid on phantom shares previously granted under the Plan. 506.25 phantom shares, in the aggregate, were granted to the nine outside Directors on June 30, 1997, based on an average price of $71.00 per share. These phantom shares represent the second quarterly installment of each outside Director's annual grant under the Plan. To the extent that these grants constitute sales of equity securities, the Registrant issued these phantom shares in reliance on the exemption provided by Section 4(2) of the Securities Act of 1933, as amended, taking into account the nature of the Stock Plan, the number of outside Directors participating in the Stock Plan, the sophistication of the outside Directors and their access to the kind of information that a registration statement would provide. A description of the Plan is contained in the Registrant's Form 10- Q for the first quarter of 1997 in Part II, Item 2, subparagraph (b), under the caption "Recent Sales of Unregistered Securities". Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits See Index to Exhibits. (b) Reports on Form 8-K The Registrant filed no reports on Form 8-K during the second quarter of 1997. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. REYNOLDS METALS COMPANY By Allen M. Earehart Allen M. Earehart Vice President, Controller (Chief Accounting Officer) DATE: August 13, 1997 INDEX TO EXHIBITS EXHIBIT 2 - None * EXHIBIT 3.1 - Restated Certificate of Incorporation, as amended. (File No. 1-1430, 1996 Form 10-K Report, EXHIBIT 3.1) * EXHIBIT 3.2 - By-Laws, as amended. (File No. 1-1430, Form 10-Q Report for the Quarter Ended March 31, 1997, EXHIBIT 3.2) EXHIBIT 4.1 - Restated Certificate of Incorporation. See EXHIBIT 3.1. EXHIBIT 4.2 - By-Laws. See EXHIBIT 3.2. * EXHIBIT 4.3 - Indenture dated as of April 1, 1989 (the "Indenture") between Reynolds Metals Company and The Bank of New York, as Trustee, relating to Debt Securities. (File No. 1-1430, Form 10-Q Report for the Quarter Ended March 31, 1989, EXHIBIT 4(c)) * EXHIBIT 4.4 - Amendment No. 1 dated as of November 1, 1991 to the Indenture. (File No. 1-1430, 1991 Form 10-K Report, EXHIBIT 4.4) * EXHIBIT 4.5 - Rights Agreement dated as of November 23, 1987 (the "Rights Agreement") between Reynolds Metals Company and The Chase Manhattan Bank, N.A. (File No. 1-1430, Registration Statement on Form 8-A dated November 23, 1987, pertaining to Preferred Stock Purchase Rights, EXHIBIT 1) * EXHIBIT 4.6 - Amendment No. 1 dated as of December 19, 1991 to the Rights Agreement. (File No. 1-1430, 1991 Form 10-K Report, EXHIBIT 4.11) * EXHIBIT 4.7 - Form of 9-3/8% Debenture due June 15, 1999. (File No. 1-1430, Form 8-K Report dated June 6, 1989, EXHIBIT 4) * EXHIBIT 4.8 - Form of Fixed Rate Medium-Term Note. (Registration Statement No. 33-30882 on Form S-3, dated August 31, 1989, EXHIBIT 4.3) * EXHIBIT 4.9 - Form of Floating Rate Medium-Term Note. (Registration Statement No. 33-30882 on Form S-3, dated August 31, 1989, EXHIBIT 4.4) * EXHIBIT 4.10 - Form of Book-Entry Fixed Rate Medium-Term Note. (File No. 1-1430, 1991 Form 10-K Report, EXHIBIT 4.15) * EXHIBIT 4.11 - Form of Book-Entry Floating Rate Medium-Term Note. (File No. 1-1430, 1991 Form 10-K Report, EXHIBIT 4.16) * EXHIBIT 4.12 - Form of 9% Debenture due August 15, 2003. (File No. 1-1430, Form 8-K Report dated August 16, 1991, Exhibit 4(a)) _______________________ *Incorporated by reference. * EXHIBIT 4.13 - Articles of Continuance of Societe d'Aluminium Reynolds du Canada, Ltee/Reynolds Aluminum Company of Canada, Ltd. (formerly known as Canadian Reynolds Metals Company, Limited -- Societe Canadienne de Metaux Reynolds, Limitee) ("REYCAN"), as amended. (File No. 1-1430, 1995 Form 10-K Report, EXHIBIT 4.13) * EXHIBIT 4.14 - By-Laws of REYCAN, as amended. (File No. 1-1430, Form 10-Q Report for the Quarter Ended March 31, 1997, EXHIBIT 4.14) * EXHIBIT 4.15 - Articles of Incorporation of Societe Canadienne de Metaux Reynolds, Ltee/Canadian Reynolds Metals Company, Ltd. ("CRM"), as amended. (File No. 1-1430, 1995 Form 10-K Report, EXHIBIT 4.15) * EXHIBIT 4.16 - By-Laws of CRM, as amended. (File No. 1-1430, Form 10-Q Report for the Quarter Ended March 31, 1997, EXHIBIT 4.16) * EXHIBIT 4.17 - Indenture dated as of April 1, 1993 among REYCAN, Reynolds Metals Company and The Bank of New York, as Trustee. (File No. 1-1430, Form 8-K Report dated July 14, 1993, EXHIBIT 4(a)) * EXHIBIT 4.18 - First Supplemental Indenture, dated as of December 18, 1995 among REYCAN, Reynolds Metals Company, CRM and The Bank of New York, as Trustee. (File No. 1-1430, 1995 Form 10-K Report, EXHIBIT 4.18) * EXHIBIT 4.19 - Form of 6-5/8% Guaranteed Amortizing Note due July 15, 2002. (File No. 1-1430, Form 8-K Report dated July 14, 1993, EXHIBIT 4(d)) * EXHIBIT 10.1 - Reynolds Metals Company 1987 Nonqualified Stock Option Plan. (Registration Statement No. 33-13822 on Form S-8, dated April 28, 1987, EXHIBIT 28.1) * EXHIBIT 10.2 - Reynolds Metals Company 1992 Nonqualified Stock Option Plan. (Registration Statement No. 33-44400 on Form S-8, dated December 9, 1991, EXHIBIT 28.1) * EXHIBIT 10.3 - Reynolds Metals Company Performance Incentive Plan, as amended and restated effective January 1, 1996. (File No. 1-1430, Form 10-Q Report for the Quarter Ended March 31, 1995, EXHIBIT 10.4) * EXHIBIT 10.4 - Agreement dated December 9, 1987 between Reynolds Metals Company and Jeremiah J. Sheehan. (File No. 1-1430, 1987 Form 10-K Report, EXHIBIT 10.9) * EXHIBIT 10.5 - Supplemental Death Benefit Plan for Officers. (File No. 1-1430, 1986 Form 10-K Report, EXHIBIT 10.8) * EXHIBIT 10.6 - Financial Counseling Assistance Plan for Officers. (File No. 1-1430, 1987 Form 10-K Report, EXHIBIT 10.11) _______________________ *Incorporated by reference. * EXHIBIT 10.7 - Management Incentive Deferral Plan. (File No. 1-1430, 1987 Form 10-K Report, EXHIBIT 10.12) * EXHIBIT 10.8 - Deferred Compensation Plan for Outside Directors as Amended and Restated Effective December 1, 1993. (File No. 1-1430, 1993 Form 10-K Report, EXHIBIT 10.12) * EXHIBIT 10.9 - Form of Indemnification Agreement for Directors and Officers. (File No. 1-1430, Form 8-K Report dated April 29, 1987, EXHIBIT 28.3) * EXHIBIT 10.10 - Form of Executive Severance Agreement between Reynolds Metals Company and key executive personnel, including each of the current executive officers (other than Donna C. Dabney) listed in Item 4A of the Reynolds Metals Company 1996 Form 10-K Report. (File No. 1-1430, 1987 Form 10-K Report, EXHIBIT 10.18) * EXHIBIT 10.11 - Amendment to Reynolds Metals Company 1987 Nonqualified Stock Option Plan effective May 20, 1988. (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1988, EXHIBIT 19(a)) * EXHIBIT 10.12 - Amendment to Reynolds Metals Company 1987 Nonqualified Stock Option Plan effective October 21, 1988. (File No. 1-1430, Form 10-Q Report for the Quarter Ended September 30, 1988, EXHIBIT 19(a)) * EXHIBIT 10.13 - Amendment to Reynolds Metals Company 1987 Nonqualified Stock Option Plan effective January 1, 1987. (File No. 1-1430, 1988 Form 10-K Report, EXHIBIT 10.22) * EXHIBIT 10.14 - Form of Stock Option and Stock Appreciation Right Agreement, as approved February 16, 1990 by the Compensation Committee of the Company's Board of Directors. (File No. 1-1430, 1989 Form 10-K Report, EXHIBIT 10.24) * EXHIBIT 10.15 - Amendment to Reynolds Metals Company 1987 Nonqualified Stock Option Plan effective January 18, 1991. (File No. 1-1430, 1990 Form 10-K Report, EXHIBIT 10.26) * EXHIBIT 10.16 - Form of Stock Option Agreement, as approved April 22, 1992 by the Compensation Committee of the Company's Board of Directors. (File No. 1-1430, Form 10-Q Report for the Quarter Ended March 31, 1992, EXHIBIT 28(a)) * EXHIBIT 10.17 - Reynolds Metals Company Restricted Stock Plan for Outside Directors. (Registration Statement No. 33-53851 on Form S-8, dated May 27, 1994, EXHIBIT 4.6) * EXHIBIT 10.18 - Reynolds Metals Company New Management Incentive Deferral Plan. (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1994, EXHIBIT 10.30) ____________________________ * Incorporated by reference. * EXHIBIT 10.19 - Reynolds Metals Company Salary Deferral Plan for Executives. (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1994, EXHIBIT 10.31) * EXHIBIT 10.20 - Reynolds Metals Company Supplemental Long Term Disability Plan for Executives. (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1994, EXHIBIT 10.32) * EXHIBIT 10.21 - Amendment to Reynolds Metals Company 1987 Nonqualified Stock Option Plan effective August 19, 1994. (File No. 1-1430, Form 10-Q Report for the Quarter Ended September 30, 1994, EXHIBIT 10.34) * EXHIBIT 10.22 - Amendment to Reynolds Metals Company 1992 Nonqualified Stock Option Plan effective August 19, 1994. (File No. 1-1430, Form 10-Q Report for the Quarter Ended September 30, 1994, EXHIBIT 10.35) * EXHIBIT 10.23 - Amendment to Reynolds Metals Company New Management Incentive Deferral Plan effective January 1, 1995. (File No. 1-1430, 1994 Form 10-K Report, EXHIBIT 10.36) * EXHIBIT 10.24 - Form of Split Dollar Life Insurance Agreement (Trustee Owner, Trustee Pays Premiums). (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1995, EXHIBIT 10.34) * EXHIBIT 10.25 - Form of Split Dollar Life Insurance Agreement (Trustee Owner, Employee Pays Premium). (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1995, EXHIBIT 10.35) * EXHIBIT 10.26 - Form of Split Dollar Life Insurance Agreement (Employee Owner, Employee Pays Premium). (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1995, EXHIBIT 10.36) * EXHIBIT 10.27 - Form of Split Dollar Life Insurance Agreement (Third Party Owner, Third Party Pays Premiums). (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1995, EXHIBIT 10.37) * EXHIBIT 10.28 - Form of Split Dollar Life Insurance Agreement (Third Party Owner, Employee Pays Premiums). (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1995, EXHIBIT 10.38) * EXHIBIT 10.29 - Reynolds Metals Company 1996 Nonqualified Stock Option Plan. (Registration Statement No. 333-03947 on Form S-8, dated May 17, 1996, EXHIBIT 4.6) * EXHIBIT 10.30 - Amendment to Reynolds Metals Company 1992 Nonqualified Stock Option Plan effective January 1, 1993. (Registration Statement No. 333-03947 on Form S-8, dated May 17, 1996, EXHIBIT 99) ____________________________ * Incorporated by reference. * EXHIBIT 10.31 - Form of Stock Option Agreement, as approved May 17, 1996 by the Compensation Committee of the Company's Board of Directors. (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1996, EXHIBIT 10.41) * EXHIBIT 10.32 - Form of Three Party Stock Option Agreement, as approved May 17, 1996 by the Compensation Committee of the Company's Board of Directors. (File No. 1-1430, Form 10-Q Report for the Quarter Ended June 30, 1996, EXHIBIT 10.42) * EXHIBIT 10.33 - Stock Option Agreement dated August 30, 1996 between Reynolds Metals Company and Jeremiah J. Sheehan. (File No. 1-1430, Form 10-Q Report for the Quarter Ended September 30, 1996, EXHIBIT 10.43) * EXHIBIT 10.34 - Amendment to Deferred Compensation Plan for Outside Directors effective August 15, 1996. (File No. 1-1430, Form 10-Q Report for the Quarter Ended September 30, 1996, EXHIBIT 10.44) * EXHIBIT 10.35 - Amendment to Reynolds Metals Company New Management Incentive Deferral Plan effective January 1, 1996. (File No. 1-1430, 1996 Form 10-K Report, EXHIBIT 10.38) * EXHIBIT 10.36 - Amendment to Reynolds Metals Company Performance Incentive Plan effective January 1, 1996. (File No. 1-1430, 1996 Form 10-K Report, EXHIBIT 10.39) * EXHIBIT 10.37 - Reynolds Metals Company Supplemental Incentive Plan. (File No. 1-1430, 1996 Form 10-K Report, EXHIBIT 10.40) * EXHIBIT 10.38 - Reynolds Metals Company Stock Plan for Outside Directors. (File No. 1-1430, 1996 Form 10-K Report, EXHIBIT 10.41) * EXHIBIT 10.39 - Special Executive Severance Package for Certain Employees who Terminate Employment between January 1, 1997 and June 30, 1998, as approved by the Compensation Committee of the Company's Board of Directors on January 17, 1997. (File No. 1-1430, 1996 Form 10-K Report, EXHIBIT 10.42) * EXHIBIT 10.40 - Special Award Program for Certain Executives or Key Employees, as approved by the Compensation Committee of the Company's Board of Directors on January 17, 1997. (File No. 1-1430, 1996 Form 10-K Report, EXHIBIT 10.43) EXHIBIT 11 - Omitted. See Part I, Item 1 for computation of earnings per share EXHIBIT 15 - None EXHIBIT 18 - None EXHIBIT 19 - None ____________________________ * Incorporated by reference. EXHIBIT 22 - None EXHIBIT 23 - None EXHIBIT 24 - None EXHIBIT 27 - Financial Data Schedule Pursuant to Item 601 of Regulation S-K, certain instruments with respect to long-term debt of Reynolds Metals Company (the "Registrant") and its consolidated subsidiaries are omitted because such debt does not exceed 10 percent of the total assets of the Registrant and its subsidiaries on a consolidated basis. The Registrant agrees to furnish a copy of any such instrument to the Commission upon request. EX-27 2
5 This schedule contains summary financial information extracted from the Reynolds Metals Company Condensed Consolidated Balance Sheet (Unaudited) for June 30, 1997 and Consolidated Statement of Income (Unaudited) for the Six Months ended June 30, 1997 and is qualified in its entirity by reference to such financial statements. 1000000 6-MOS DEC-31-1997 JUN-30-1997 22 0 1120 18 791 2009 6641 3548 7479 1292 1768 0 0 1489 1198 7479 3398 3410 2823 2823 154 0 76 148 50 98 0 0 0 98 1.35 0.0 This amount represents total receivables, since trade receivables are not broken out separately at interim dates, in accordance with S-X 10-01(2).
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