Document MGnnGKBNoq7R8DpbnN4q8m1Ja

1980 VOL. 2 J-Z MOODY'S. INDUSTRIAL MANUAL COVERING NEW YORK, AMERICAN & REGIONAL STOCK EXCHANGES & INTERNATIONAL COMPANIES WILLIAM O. DWYER, Publisher HOWARD G. KIEDAISCH, Ass't Publisher L. JOSEPH ROGERS, Gen. Manager ROBERT p. HANSON, Editor-in-Chief Editorial Board ROBERT W. BURKE KENNETH W. CLIFFORD BRIAN T. COFFEY ALFRED G. ELLINGHAM HAROLD H. GOLDBERG ALVIN E. COUVIA JOSEPH B. LEICH WILLIAM H. MOORE WILLIAM M. PACCIONE FRANK R. PLATAROTE MICHAEL A. RABBIA BERNARDO G. SCERI, JR. Moodys Investors Service a company of The Dun &'Bradstreet Corporation SEE FOLLOWING PAGE FQR COMPLETE LIST OF OFFICES (.'i)|n nahl C'ly.SOln MOODY'S INVESTORS SERVICE. INC. \ou York \ll rnjhls reser\ ed MOODTS INDUSTRIAL MANUAL 3945 REYNOLDS METALS CO. PITAL STRUCTURE ng term debt ` Issue First s.f. 4Vis. B, due June l, 1981 First s.f. 4%s, C, due Dec. 1, 1981. First si. 5*/bs. D, due Dec. 1, 1987 First si. 5%s, E, due June 1, 1990 1st 5%s, F, due Tune 1, 1993 ..... 1st 9%s, G, due Dec. 15, 1994 .... 1st 8.85s, H, Sept. I, 1998 ................. 1st 5.055s, AA, due June l, 1990 . .. 1st 5.023s, BB, due June 1, 1990 .. 1st 5.137s, CC, due June 1,1990 .. _ Conv. subord. deb. 4l/2S, 1991-----Other debt.................................................. & Eurodollar conv. deb. 5s, 1988 ... Other subsidiary debt........................... "ITAL STOCK Issue Rating Be Par Value 850 100 Amount Outstanding 85,236,000 13,040,000 20,000,000 62,796,000 112,000,000 62,000,000 130,000,000 41,549,000 16,397,000 32,468,000 64,500,000 271,732,000 47,500,000 33,100,000 Amount Outstanding 89,249 shs. 513,393 shs. Times Charges Earned 1979 1978 5.09 4.39 Earned per Sh. 1979 1978 <1,984.34 <1,140.93 344.96 197.72 Interest Dates J fitD 1 I &D 1 J fit D 1 } &D 1 J fit D 1 J &D 1 Mfit S 1 J fit D L JficD 1 J fit D l Mfit S t J fit D i Call Price aioo.52 a.......... m.......... 0101% Divs. per Sh. 1979 1978 <2.375 <2.375 4.50 4.50 Call Price 51.00 100 (TJAs reported by Co. based on avg. shs. outstg. I i text. [OSold privately. [^Subject to change; see text. Price Range 1979 HI.......... 78 - 65 Price Range 1979 1978 50%- 46 45 - 40% 801/3- 59 84 - 611/3 39%- 281/4 39%- 241/3 _rORY Incorporated in Delaware July 18, 1928 with perpetual charter, and acquired the foil busi-- and operating assets of United States ipjl Co. In Aug., 1928 purchased entire capital ^ of Robertshaw Thermostat Co., incorted 1914; also acquired control of Fulton hon Co., incorporated 1926. Jan. 3, 1930 purchased and transferred newly organized subsidiary Midland Foil Inc. substantially all assets of Midland Co. of Chicago. On May 29, 1930 acl certain assets of Lehmaier, Schwartz & . Inc., New York, manufacturers of metal \ On Aug. 8, 1930 purchased net assets of sed Metal Products Corp., New York. Dec. 18, 1933 acquired net assets of Stan; Art Works, Louisville, Ky. In 1935 acsd interest in Richmond Radiator Co. (latmerged with Rheem Mfg. Co. in 1956). i Feb., 1936 acquired through Robertshaw -mostat Co. entire stock of Grayson Heat rtrol, Ltd., Lynwood, Cal. In Mar., 1936 red Bridgeport Thermostat Co., Inc. to ac- property and rights obtained from ort Brass Co.* In Mar., 1938 acquired _ Robertshaw Thermostat Co. entire non stock of American Thermometer Co. Oct. 9, 1940 company incorporated ~te Mining Corp. (Del.) to conduct baux. exploration and mining activities; name ~ged to Reynolds Mining Corp., Aug. 9, 1. _ Jan. 23, 1941, organized Reynolds Alloys and Reynolds Ore Co.; former merged in and latter dissolved Tune 13, 1945. In 1943, purchased stock of Charter Oak c & Range Co.; name changed to ReynSales Co. on May 18, 1951; name changed rynolds Aluminum Recycling Co. on May 975. 1945, organized Reynolds Intem&cional *dco, S.A. (now Reynolds Aluminio, to operate an aluminum plant in Mexico, purchased plants, and other assets of "um Products Co. of La Grange and lit, Illinois. * |g 1947, Robertshaw Thermostat Co., Sylphon Co., and Bridgeport Thermoi., wholly-owned subsidiaries were I into Fulton Sylphon Co. (name subsech&nged to Robertshaw ContrQls Oct. 31, 1947 securities of latter were the market and company received aptely 812,000,000" in cash and at the , time retained approximately 50% inter- . the common stock of Robertshaw-Ful~trols Co. (subsequently reduced). 11949 acquired outstanding capital stock Qolds Research Institute, Inc. (name 1 to Reynolds Aluminum Service Corp. s 17, 1954 and to Reynolds Aluminum ; Corp. of Virginia on Nov. 8, 1957 and uolds Metals Development Co. on July . _ 1949, Reynolds Aluminum Co. ac_from U.S. Government six plants, forJeased, for 857,581,958. "%y 18, 1949, organized Reynolds Ja nes, Ltd., to develop and operate Ja- ,ore properties. Company subscribed for common stock and subsequent- "ed with Mutual Security Agency ECA) for advance to subsidiary of .033 against agency's purchase of alu- over 20-year period. TUie, 1950, company exercised its option ase controlling stock interest in States Iron Roofing Co. (name to Reynolds Aluminum Supply Co. 1957 and dissolved in 1965). 1952, purchased bauxite rights and Berbice Co., Ltd., in British Guiana, on included mining leases and excluQiaaions covering some 490,000 acres, i mining equipment, houses, washing tying plants service facilities, short _and barge line. j organized Reynolds International, consolidate and expand foreign opera- In 1955 Reynolds Alloys Co., Reynolds Alu minum Co. and Reynolds Reduction Co. were merged into parent company. In 1956 acquired Arrow Brands, Inc., Long Beach, Cal., and Security Chain Link Fence Co. Both later dissolved. In Mar., 1958, acquired minority interest in Venesta Ltd., London, Eng., manufacturer of aluminum foil, etc., from Ekco Products Co. Company and Tube Investments Ltd. (owners of Reynolds T.I. Aluminium Ltd.) ac quired at various times (about 96%) of ordi nary shares of The British Aluminium Co. Ltd. Company owns 48% interest and Tube Investments Ltd., 48% interest in this stock. In 1959 the foil business of Venesta was transferred to a new subsidiary, Venesta Foils, Limited, and sold to Reynolds T.I. Alu minium, Ltd. On Apr. 10, 1961, merged United States Foil Co. Under the plan United States Foil Co. class A and B no par common was reclassified into single class of voting stock on basis of 3 shares for each class A share and one share for each class B share; new stock was subsequent ly exchanged for company stock on basis of 0.85 share for each United States Foil Co. new share. On July 31, 1961 merged Tilo Roofing Co., Inc. providing for exchange of one share- of 84.50 convertible second preferred for each 5% common shares of Tilo. In Nov. 1961 Reynolds International, Inc., subsidiary acquired for cash Aluminum Ex truders Ltd. from Kruger Organization Ltd. In early 1965 Reynolds International Inc. subsidiary acquired all stock of Filter Lite AllWeather (Alum.) Ltd. in which it previously held 50% interest. Name changed to R.M.P. (Quebec) Ltd. May 10, 1965, and to Reynolds Cable Co. Ltd. Aug. 1, 1967. On Jan. 1, 1968 acquired facilities and busi ness of Foote-Burt Co., a machine tool manu facturer (subsequently discontinued opera tions). In Aug. 1969, acquired Industrial Metals, Inc., Knnaaa City-based metals distributor, thru an exchange offer under which all but one shareholder of Industrial exchanged one In dustrial capital sh. for 10.75 Company com mon shs. 18,367 common shs. were issued at this ratio. Remaining shareholder exchanged one Industrial sh. for 9.7561 Company com mon shs. and 19,912 common shs. were issued at this ratio. Up to 31,721 additional Company common shs. will be issued to this shareholder contingent upon future earnings (dissolved in Mar. 1973). On July 31, 1970 merged Canadian British Aluminum Co. (see Moody's 1970 Industrial Manual) a subsidiary Co. also merged CRM Capital Ltd. Through merger co. formed a new subsidiary Canadian Reynolds Metals Co., Ltd. In Aug. 1971 acquired assets (which were contributed to El Campo Aluminum Co., a new wholly owned subsidiary) of May Alumi num Co. for 51,226 common shares. During third quarter of 1974 these shares were repur chased by Co. Additional consideration was given for waiver of rights to receive an inde terminable number of additional shares of Reynolds common stock. On Jan. 1, 1975 assets of Reynolds Guyana Mines, Ltd., were nationalized by Gov't of Guyana. Under an agreement between Com pany, Reynolds Guyana Mines, Ltd., Gov't of Guyana, and Overseas Private Investment Corp., a U.S. gov't agency. Company received payment of 810,000,000 on Feb. 20, 1975 for nationalized assets. In Sept. 1976 Co. sold its interest in British Aluminum Co. and Reynolds T.I. Aluminum Ltd. for 886,000,000. In Nov. 1978, Reynolds Mining Corp., sub sidiary, was merged into Company. Sale of Mineral Propertlea: In late 1973 Co. transferred to Texaco, Inc. (see alphabetical index) a major portion of its interests in over 30,000 acres of land owned and held under contract, as well as associated coal and water rights and permits, located in Wyoming. Pur suant to transfer, Co. received initial payment of 815,282,000. Agreement also provides that Co. shall receive minimum advance royalties of 812,000,000 per year for next 10 years be ginning in 1974 to apply against first 700 mil lion tons of coal to be mined. Thereafter Co. is to receive a royalty of 80.20 per ton of coal mined, with provision for escalation. Co. has retained certain land, coal and water rights in Wyoming to provide for future manufacturing operations. In early 1980, Co. sold 51% of its Jamaican mining assets and operations and all of its land holdings in Jamaica to Jamaican govern ment. SUBSIDIARIES & ASSOCIATED COMPANIES On Dec. 31, 1979, held 100% voting power (except as otherwise noted) m the following major subsidiaries: Consolidated subsidiaries included in con solidated financial statements: Aluminio Reynolds de Venezuela, S.A. (Alrey- ven) (Venezuela) Broad St. Road Corporation (Del.) Canadian Reynolds Metals Company, Limit- ed-Societe Canadienne de Metaux Reynolds, Limitee (Quebec) Caribbean Steamship Company, S.A. (Pana ma) Reynolds Alumina Stade, Inc. (Del.) Reynolds Aluminium Deutschland, Inc. (Del.) Reynolds Aluminium Europe, S.A. (Belgium) Reynolds Aluminum Credit Corporation (Del.) Reynolds Aluminum Recycling Company (Mo.) Reynolds Cable Company Limited--La So- caete des Cables Reynolds Limitee (Quebec) Reynolds Extrusion Company Limited--La Compagnie de Profiles Reynolds Limitee (Canada) Reynolds Haitian Mines, Inc. (Del.) Reynolds International, Inc. (Panama) Reynolds Jamaica Alumina, Ltd. (Del.) Reynolds Jamaica Mines, Ltd. (DeL) Reynolds Metals European Capital Corp. (Del.) Tilo Company, Inc. (DeL) Associated companies (20% to 50% owned) included in combined financial statements: Aluminio del Caroni, S.A. (Venezuela) (S0%) Other unconsolidated subsidiaries and asso ciated companies (20% to 95% owned) in which the Company takes up equity in net in come: Alumina Partners of Jamaica (Partnership) (Del.) (36Vi%) Aluminium Oxxd Stade Gesellschaft zmt bes- chrankter Haftung (W.Germany) (50%) Hamburger Aluminium-Werk Gesellschaft mit beschrankter Haftung (W.Germany) (33Vs%) Industria Navarra del Aluminio, S.A. (Spain) (50%) Jamaica Alumina Security Company, Ltd. (Del.) (37%) La Compagnie Hydroelectrique Mamcoua- an-Manicouagan Power Company (Que- gec) (40%) Reynolds Aluminio, Sooedad Anonima (Mex ico) (53%) Reynolds Aluminum Holland B.V. (Nether lands) (95%) Reynolds Aluminum Company of Canada, Ltd.-Societe d*Aluminium Reynolds (Cana da) Limitee (Canada) (65%) Reynolds Philippine Corporation (Philip pines) (39%) Robertshaw Controls Company (DeL) (27%) Sodeta Lavorazioni Industrial! Metalli S.p.A. ("S.L.I.M.") (Italy) (60%) The names of a number of consolidated subsidiaries, unconsolidated subsidiaries and associated companies (20% to 50% owned) have been omitted because considered in the aggregate they would not constitute a signifi cant subsidiary. Joint Ventures: Alumina plant opened in Ja maica in 1969 with initial capacity of 950,000 tons (1,300,000 tons by late 1972) is 36.5% owned by Reynolds Metals Co.; 27% by Ana- )46 MOODY'S INDUSTRIAL MANUAL ida Co. and 36.5% by Raiser Aluminum St for all-aluminum engine block, nationwide Mexico: Reynolds Aiuxniriio, S.A.: Sheet, emical Corp. aluminum recycling, all-aluminum auto foil, printed foil, extrusion. In Nov. 1976. Company signed an agree- bumpers. Company was first basic metals pro Netherlands: Reynolds Aluminum Holland, At with CVRD,' the Brasilian state-owned ducer to move from product to market ap B.V.: Extrusions. e enterprise, to form a new company called proach to sales, and in 1969 combined market Philippines: Reynolds Philippine Corpora to construct an aluminum smelter in ing and production responsibility for specific tion: Sheet, foil, extrusions, utensils. 'SziL Company initially to have 30% interest markets in various divisions under new orga Spain: Industria Navarra del Aluminio, venture which will eventually decline to nization. S.A.; Wire, cable, extrusions, with plans for %. In Feb. 1980, Co. & three other companies PRINCIPAL PLANTS & PROPERTIES other fabricating operations. Venezuela: Aluminio Reynolds de Venezue Teed to participate in a joint venture for the Alumina plants: Hurricane Creek, Ark. and la, S.A.: Sheet, foil, extrusions. xrpose of constructing and operating a proj- Corpus Christi, Tex. Aluminio del Caroni, S.A.: Primary t to Western Australia to mine bauxite from Ingot plants: Arkadelphia, Ark., Corpus aluminum and fabrication. serves proven to contain at least 200 million Christi, Tex., Listerhill, Ala., Longview, West Germany: Reynolds Aluminiumwerke ry metric tons and to produce alumina with Wash., Massena, N.Y., Jones Mills, Ark. and GmbH; Aluminium Oxid Stade GmbH and 2 designs! capacity of one million met- Troutdale, Ore. Reynolds Aluminum Hamburg GmbH: Sheet, c tons per year. Mining Plants: Bauxite--Arkansas (6,700 extrusions, alumina and primary aluminum. Proposed Joint Venture; In Feb. 1980, Reynids International Inc., a subsidiary, was neotiating a joint aluminum-smelter venture sat would cost about $210,000,000 with the Philippines. The proposed 50-S0 venture vould use bauxite from the island of Samar, rhe project would have a production capacity jf 140,000 metric tons a year. Two sites are )dng discussed for the plant's location, with he availability of electricity the prime consid eration. The aluminum smelter is one of 11 najor products included in a Philippine indusrialiration plan valued at the equivalent of 16,000,000,000. In addition to exports, the smelter would produce a raw materials for Philippine industry. BUSINESS & PRODUCTS Company js a major producer of primary aluminum and fabricated aluminum products and is engaged in most phases of aluminum industry. Company manufactures aluminum products for a variety of industries including building and construction, transportation and automotive, electrical and communications, appliances and utensils, containers and pack aging, machinery and equipment and chemi cals. Products include: Ora A Chemicals: Aluminas, Bauxite, Cryol ite, Fluorspar and Calcined Coke. Piimwy Aluminum: Ingot, billet, molten. MM Products: Sheet (flat, coiled, coated, lam inated, patterned and embossed), blanks, cir cles, impact slugs, plate (machined and sculp tured), extruded and drawn shapes and tubes, tapered and welded tubes, pipe, wire rod, bar, forging stock, structurals, powders and pastes, foil and screw machine stock! Dsctrie si Stranded and alloy conductors, wire end cable, rigid conduit, capacitor foil, strip conductors, bus conductors, substation structures and transmission towers ACSR and foil coils, acres), Haiti (34,000 acres) and Jamaica, W.I. (65,000 acres). Facilities in Arkansas to mine, treat and transport bauxite. Fluorspar: Mexico, Colorado, Kentucky (mines), Texas (concentrating plant). Limestone: Arkansas. Calcined Coke: Louisiana. Coal: Kentucky and Wyoming. Principal Domestic Plants Sheffield and Usterhill, Ala.: Sheet, wire, recy cling St reclamation, rod St bar, redraw rod St wire and welded tubing. Phoenix, Arizj (2 plants) Extruded shapes and tubing and structural fabrication. Hot Springe, Aric: Continuous rolling. Rocklin, Calif.: Can ends. Torrance, Calif.: (2 plants) Extruded shapes, tubing and cans. Tampa, FItu: Cans. Honolulu, Hawaii: Cans. McCook, IIL Sheet and plate. Louisville, Kyu (3 plants) Foil products, pow der and paste, extruded shapes and tubing. Houston, Tex4 Aluminum cans. Grand Rapids, Mich: Extruded shapes and tubing. St. Louis, Mo.: Printed products and foil proc essing. Woodbrtdpe, N.J- Aluminum cans. Salisbury, N.Cj Cans. Malvern, Ark. and Longview, Wash: Electric wire and cable products. Chesterfield County, Vs: (4 plants) Sheet, ex truded shapes and tubing, printed products and foil processing and recycling St reclama tion. Grottoes, Va^ Plastic film. Hayward, CaL Cans. WalfklU, N.Yj Cans. MANAGEMENT Officers D. P. Reynolds, Chmn. St Chief Exec. Off. W.S. Leonhardt, Vice-Chmn. St Chief Fin. Off. J.E. Blomquist, Pres. St Chief Oper. Off. W.G. Reynolds, Exec. Vice-Pres. (Res. St Lev el.) J.L. Reynolds, Exec. Vice-Pres.; R.H. Featherston, Group Vice-Pres. N.W. Zundel, Group Vice-Pres. Paul Murphy, Group Vice-Pres. F.R. Edney, Vice-Pres. Personnel St Corpo rate Admin. W.B. Moore, Jr., Vice-Pres. (Arch. St Bldg. Prod. Div.) R.W, Winstead, Vice-Pres. (Mill Prod. Div.) W.H. Honaker, Jr., Vice-Pres. (Reynolds Alum. Sup. Co. Div.) R.G. Holder, Vice-Pres. (Flex. Pkg. Div.) R.E. Cole, Vice-Pres. (Primary Metals Div.) R.B. Newman, Vice-Pres. W.H. Darden, Vice-Pres. (Govt, relations) J.H. Galea, Vice-Pres. and Gen. Counsel H.L. Albrecht, Vice-Pres. (Purch. St Transp.) R. D. O'Donnell, Vice-Pres. (Can Div.) E. H. Lucas, Jr., Vice-Pres. (Electrical Div.) AJED. Reynolds, III, Vice-Pres. (Alumina St s Chem. Div.) S. D. Wyllie, Vice-Pres. (Cons. Div.) S, J.T. Hudson, Jr., Fin. Vice-Pres. RJtf. Bolling, Vice-Pres. (Recycling St Red**' " mationDiv.) H.V. Helton, Vice-Pres. (Oper. Services) W.G. Reynolds, Jr., Treasurer R.I. Dawes, Secretary D.C. Bilsing, Controller Directors (Showing principal Corporate Affiliations)^ David P. Reynolds, Chmn. St Chief Exec. Of of Co. John E. Blomquist, Pres. & Chief Oper. Off.: Co. , Building Products: Roofing, siding, rain car rying equipment, shingles, railing, columns, nails, fasteners, fittings, shutters, louvers, vents, flashing, windows, doors, soffits, tub and shower enclosures and insulated panels, acoustical systems, awning components, ex panded metal products, commercial railing systems, mobile home components, painted extrusions and flooring. Highway Products: Culvert sheets! signs and supports lighting poles, guard rails, posts and bridge ^expansion joints, sign blanks, bridge rail and pedestrian bridges and barrier rail systems. Fabricated Products: Tubed sheet, nestable bulk containers, telephone booths, custom fabricating, welding, stamping, drawing and forming and finishing roll forming and inte gral finned tube, stadium seating, railing sys tems and textile pirns and bobbins. Bristol, Va: Can ends. Ashvdle, Building products. Richmond, Vsj (2 plants) foil and foil prod ucts. Research Divisions located as follows: Alu mina, Hurricane Creek, Ark.; Reduction, Listerhill. Ala.; Metallurgical, Packaging and Product Development, Experimental Center, Richmond, Va., Can Development, Chester field Co., Va. Domestic Subsidiary Plants Reynolds Jamaica Mines, Ltd., Jamaica, W.I.; facilities to mine, treat and transport bauxite. Tilo Co. Inc.: Plant at Stratford, Conn, with approx. 611,350 sq. ft. of floor space on 17 acres of land. Reynolds Haitian Mines, Inc.; Facilities in Haiti to mine, treat and transport bauxite. Southern Gravure Services, Inc. Manufac William S. Leonhardt, Vice-Chmn. St Chief 1 Off. of Co. J. Louis Reynolds, Exec. Vice-Pres. of and Chmn., Reynolds International Inc. William G. Reynolds, Exec, Vice-Pres. of Co/; Paul Murphy, Group Vice-Pres. of Co. Ralph S. Thomas, Pres., Robertshaw Conu Co. Fred R. Edney, Vice-Pres. of Co. Allen W. Merrefl, Former Chmn., Sattley C Herbert Stein, Prof, of Economics, Univ._ Virginia. Henry R. Unden, Pres., Gas Research tute. Thomas A Graves, Jr., Pres., College of 1 liam and Mary. Nell W. Zundel, Group Vice-Pres. of Co. Packaging Products: Aluminum foil, over- tures engraved rotogravure printing cylinders. Richard L. Terrell, Former Vice-Chmn., < wraps and labels, foilbo&rd cartons polyethyl El Campo Aluminum Co. Manufactures ex eral Motors Corp. ene-foil combinations, foil containers, cans truded shapes. and can ends, beverage cases and cartons and special packaging machinery, plain, coated and printed can sheet, flat and coiled and slugs for cans, collapsible tubes, etc. Consumer Products: Reynolds Wrap foils and interleaved and interfolded sheets, do-it-your self aluminum, Reynolds Food Service Film and Foil and Reynolds Containers and cook ing bags. Plastic Rim Products: Polyvinyl chloride films, polyvinyl alcohol film and solutions, shrinkable film and disposable laundry bags. Manufacturing Abroad Subsidiaries and Associated Companies Belgium: Reynolds Aluminum Europe, S.A.: Extrusions, foil printed foil packaging, build ing products. Canada: Canadian Reynolds Metals Co., Ltd.: Primary aluminum. Reynolds Aluminum Co. of Canada Ltd.: Sheet, building products, foil, printed foil, packaging materials, foil equipment. Reynolds Extrusion Co. Ltd.: Extrusions Auditors: Ernst St Whinney. Annual Meeting: Third Wed. in Apr. Shareholder Relations: R.I. Davies, Co*i rate Secretary. TeL" (804)281-2811. Director Meetings: 3rd Friday. No. of Stockholders: Dec. 31, 1979: 4%%} 822; 41/a% pfd., 2,419; com., 25,619. No. of Employees: 1979 (avg.), 37,300. Machinery: Can making machinery. Reclamation Products: Ingot, deoxidizing products, granules and anodes. Research & Marketing: Innovations pioneered by the company include rotogravure printing and fabricated products. Reynolds Cable Co.: Redrawn rod St cable. Colombia: Aluminio de Colombia, Reyn olds, Santo Domingo, S~A.: Sheet, foil, extru sions, containers. Executive Office: Reynolds Metals Richmond, VA 23261. TeL <804)281-2000. New York Office: 16th Floor, 245 Park A* New York, NY 10017. Primary Production (tons) year to Dec. 315 j of aluminum foil for packaging, aluminum Italy: Sodeta per Azioni Fonderpress: alu 1979......................1,093,400 siding, first successful household aluminum minum die castings, dies. 1978........................1,059,900 1975 ......................... 1974.........................L* foil, high-strength overhead electrical conduc S.L.I.M.--Sodeta Lavorazioni Industrial! 1977........................1,001,300 1973.........................L- tor, all-aluminum 12-os. beverage can, alloy Metalli, S.p.A.: Sheet, foil extrusions. 1976 .........................983,400 MOODY'S INDUSTRIAL MANUAL 3947 ncome accounts COMPARATIVE CONSOLIDATED INCOME ACCOUNT, YEARS. ENDED DEC. 31 (taken from reports filed with Securities & Exchange Commission) et sales.......................................................................... Other revenues........................................................... 1979 3,305,200 65,800 (in thousand $) 1978 1977 2,829,300 2,352,755 44,700 39,286 1976 2,084,414 47,742 1975 1,679,262 51,693 feTTI1974 1,993,189 55,774 Balance................................................................... 2ost of products sold.......................................... ling, aav., res., admin. & gen. exp................ ^predation, depict and amort....................... Interest and debt expense..................................... Other deductions...................................................... 3,371,000 2,684,500 223,900 82,900 70,100 23,600 2.874.000 2.261.000 200,600 77,700 68,200 35,300 2,392,041 1,936,315 180,855 74,408 63,703 8,731 2,132,156 1,729,255 166,549 71,547 60,728 7,662 1,730,955 1,360,652 152,111 72,612 61,446 6,502 2,048,963 1459,957 139,428 76,808 77,319 2,555 Inc. bef. and extraord. items------ Taxes on income.........................-............................ 285,800 108,700 231,200 113,400 128,029 41,777 96,415 21,350 77,632 17,615 192,896 78,653 . of year preferred dividend. 2nd preferred dividends Common dividends--cash 177,100 824,500 200 2,500 37,000 117400 738,700 300 2,700 29,000 86,252 679,577 414 2,699 24,024 75,065 626470 478 2,699 18,681 60,017 586,585 565 2,705 16,962 114443 492,700 639 2,705 17,014 end of year. SUP- K&l. data Maintenance & repairs.................... Depredation, depict, and amort.. (Tffaxes other than income............. Advertising............................................ Research and development.......... 961.900 266,700 82,900 166,300 28,300 824,500 229,400 77,700 154,100 25,200 {TJIndudcs related portions of items shown under Supplementary P. 8c L. Data" below statement. I gjAt Dec. 31, 1979, $198,000,000 was unrestricted as to*K dividends on common stock. Restated. See General Note (c) under Balance Sheets, below. Includes payroll tax (1979, $61,600,000). Restated. 1973 as orginally reported. Certain amounts have been restated to conform to 1976 presentation. Statement of Chen eial Position (in $ 000): Source of Funds: Net earnings................. Depr., amort, etc. ... Proceeds of long-term debt... Proceeds from sales of assoc, co.'a-----Other, net...................... Total 738,692 679,577 626,370 198,027 74,000 128,701 177,360 71,547 110,073 145,002 72,612 92.842 23,300 22,400 `21,366 In Consolidated Flnan- 1979 177,100 82,800 1978 117,800 103,100 Disposition of Funds: Capital expend.............. Dividends paid............ L. t debt retired.......... 17,100 8,100 92,900 95,200 10,700 Incr. in inv....................... Other................................ Total...................... 285,100 419,700 Work. cap. incr............. f 586,585 159,265 76,808 103,625 12,200 13,700 230,100 39,700 58,100 10,600 17,800 356.300 (71,200) necord of Earnings, years ended Dee. 31 (in thousands of dollars): Costand Oth. Inc. It 11963. 1964. 1965 . 1966. 1967. 1968. 969... .970... 971... 1972... 1973... Net Sales 438,724 478,311 537459 565,609 620,059 739,796 839,402 803,963 843,753 1,012,652 1,035,166 1,093448 1,162,183 lt449,751 Expenses 392,286 433,328 484,801 517,726 553,735 642.990 721,342 712.214 776.990 902,956 934,700 1,048,467 1,129,099 1462,002 Balance 46,438 44,983 52,458 47,883 66424 96,806 118,060 91.749 66,763 109,696 100,466 44,781 33,084 87.749 Ded. (Net) 49,019 411,509 413,723 412,096 414,540 413,940 412,433 4174 430,005 430,695 431,233 439,328 438,299 430,189 Inc. Bef. Taxes 37,419 33,474 38,735 35,787 51,784 82,866 105,627 74,460 36,758 79,001 69,233 5,453 </5,215 57,560 Income Taxes 11,758 8,375 12,403 8,440 15,395 30,286 41,338 27,213 6,126 23,021 22,131 crlOl crSJ2S 18,891 Net Income 25,661 25,099 26,332 27,347 36,389 52,580 64,289 47,247 30,632 55,980 47,102 5,554 210 38,669 Common Dividends 8,503 7,803 7,850 7,850 9,424 10,149 13,038 14,895 14,876 15,707 18,275 14,386 7,656 6,813 Com. Shs. Outstand. 17,038,195 16,514.527 16,514,927 16,513,119 . 16,522469 16,624,069 16,673,611 16,681,460 16,681,460 16,719,839 17,024,226 17,225440 17428,405 17,235,782 to include eauity in undistributed net income of additional associated companies. ... . .m to include proroion for deferred taxes on undistributed net income of certain unconsolidated subsidiaries and associated companies. itwwn, after, $52,146,000 and $249. ______in 1975. ________ 'ore special items; after. d$636,000 and dS0.24. Years 1960 and 1961, incL are as orginally reported. CE SHEETS COMPARATIVE CONSOLIDATED BALANCE SHEETS, AS OF DEC. 31 (taken from reports filed with Securities & Exchange Commission) ~TS "t Assets: * marketable securities...................... "vables...................................................... "ventories........................................................ dd expenses............................................... .Total currant assets................................... t in unconsoL subs, and ted companies..................................... pH. It equip.--at cost.............................. allow, for deprec., depL It amort... Net property account................................ of cost of invest, in consoL over f in related net assets........................... i charges and other assets............... Total.................................................... DUTIES Liabilities: _ts payable and accruals................. -term debt--current portion............. on income................................................. 1979 164,000 440,900 682,100 26,000 1.313.000 238,900 2.412.000 1,187,800 1,224,200 26,600 120,400 2,923,100 397,500 42,700 103.300 87,000 (in thousand $) 01978 1977 197,200 396,700 673,000 12,000 52,635 299,067 659,756 17,253 1,278,900 1,028,711 220,200 2,199,400 1,119,200 298,105 2,075,534 1,067,347 1,080,200 1,008,187 27,100 102,300 27,279 100,165 2,708,700 2,462,447 320,600 43,100 92,300 69,200 249,922 63,655 27,990 47,378 1976 65,016 285,766 583,429 8,583 942.794 298,183 2,002,117 1,009,176 992,941 27,464 80,482 2,341,864 239,899 73,536 21,807 28,587 1975 65,622 220,161 550.8S5 8,281 844,919 275,477 1,936,444 953,362 983,082 27,607 73,053 2,204,138 169,325 65,532 13,805 42,886 otal currant llabHitlss .................... ,, . debt (exd. conv. sub. debs.)... ~ttred credits and other liabilities. ubk subordinated debentures . 2nd pfd..................................................... stock............................................. earnings........................................... otal.............................................................. ent assets........................................ ,^-KTY ACCT.--ANALYSIS ttoons at cost.......................................... ts or sales................................... additions--net................................ ^ RESERVE--ANALYSIS ; charged to income............... renewals charged to res............ additions............................................. reductions.......................................... 630,500 764,600 210.900 106,000 51,300 197.900 961.900 2,923,100 682,500 1 82,900 16,700 2,400 525.200 776.600 221.600 112,000 59,600 189.200 824,500 2,708,700 753,700 77,700 25,800 388,945 738,503 222,585 118,000 67,195 188,527 738,692 2,462,447 639,766 74,408 16,237 363,829 759,908 214,236 121,500 69,428 133,386 679,577 2,341,864 578,965 71,547 15,733 291,548 742,163 214,828 125,000 71,359 132,870 626,370 2,204,138 553,371 72,612 11,634 17,825 1974 112,480 276,687 503,254 9,757 902,178 248,201 1,998,595 910,209 1,088,386 27,732 79,900 2,346,397 199,462 52,077 38,225 50,280 340,044 865,524 223,704 125,000 73,189 132,351 586,585 2,346,397 562,134 101,728 44,611 76,808 32,455 B^73 1,449751 1,482,293 1,171,477 116,151 74,374 56,862 5,869 57,560 18,891 38,669 464,264 715 2,705 6,813 492,700 121,866 74,374 48,488 10,995 11,200 162,100 32,000 86,700 21,400 3,600 305,800 113,900 Earn. Per Com. Sh. 1.26 1.26 1.39 139 1.94 2.92 3.62 2.60 1.61 3.13 2.5S 0.11 dO.19 2.04 197$ 56,842 249,185 396,483 14,952 717,462 233,075 1,939,588 865,856 1,073,732 27,960 83,762 2,135,991 155,573 48,746 10,949 35,133 250,401 853,291 207,438 125,000 74,474 132,687 492,700 2,135,991 467,061 96,721 38,709 74^74 19,755 3948 MOODY'S INDUSTRIAL MANUAL After reserves (1979, (8,300,000). Inventories are stated at the tower of cost or market Cost of inventories - of approximately (486,000,000 in 1979 and (486,000,000 in 1978 is deter mined by the last-in, first-out method. Cost of other inventories, is determined by average or first-in, first-out method. If the latter method were applied to all inventories, they would increase by approximate ly (493,000,000 and (376,000.000 at Dec. 31, 1979 and 1978, respectively. No par shares (after deducting treasury shares 1979, none; 1978-72, 7,449): 1979, 18,953,136; 1978, 18,778,519; 1977, 18,7S7,790; 1976, 17,256,865; 1975, 17,247,667; 1974, 17,243,704; 1973, 17,235,782. Restated. See General Note (c) below. Book Deprec. 1979: Value Reserves Land improv. & min. prop. ......................... (134,000,000 (59,000,000 Bldgs. & improv........... 387.100.000 167.200.000 Mach. & equip............... 1,723,600,000 961.600.000 Const in prog.............. 150.200.000 Design, cash & secur.......................... 17,100,000 Total....................... 2,412,000,000 1,187,800,000 Total additions: 1979, (233,500,000; 1978, (156,800,000; 1977, (92,977,000; 1976, (82,559,000; 1975, (114,415,000. Total deductions: 1979, (20,900,000; 1978, (32,900,000; 1977, (19,560,000; 1976, (16,886,000; 1975, (176,566,000. Restated for comparative purposes in accord ance with SEC mandate on reclassification of reclaimable preferred stock with mandatory sinking funid requirements. kkuid. (4,,500,000 (..1..9...7..8...,..(..5...,.1...0..0...,.0...0...0..) 4%% Series A pfdTstk. which has mandatory sinking fund irequire ments. Amount comprised of 43/a% 2nd pfd. and 4*A% cum. Series A pfd. General Notes (a) Accounts of Company 4 and wholly owned subsidiaries are included in consolidat ed financial statements after elimination of significant intercompany transactions and profits and losses. . Investments in unconsolidated subsidiaries and associated (more than 20% owned) com panies are carried at cost, adjusted for Com pany's equity in their undistributed net in come. In opinion of Company's management, excess of cost of investment in subsidiaries and associated companies over equity in relat ed net assets generally does not require amor tization. The carrying amount ((100,100,000 for un consolidated subsidiaries and (138,600,000 for associated companies) of the Company's in vestments in and advances to such companies at December 31, 1979 was substantially to its equity in related net assets. (b) Depredation of plant and equipment provided by the straight-line method i their estimated useful lives. Capital leases improvements to leased properties are dzed generally on the basis of the shorter the terms of the respective leases or the < mated useful lives of the related facilities, pletion of unrecovered cost of mines is c* puted based on relationship that quantity minerals mined each year bears to the mated reserves as of the beginning of the;,. Expenditures for mine exploration and velopment (including stripping) are to expense as incurred. (c) In 1975 the Company changed its od of translating noncurrent foreign cuu^ receivables and payables to comply with -> new standard established by the Financial AjO counting Standards Board. Prior to 1975, -- receivables and payables were gem translated at rates of exchange pre- December 31, 1970 or at the dates____ quent transactions. The Company is now rZ quired to translate these amounts at rates exchange in effect on the balance sheet dal Changes have been made in the finaw statements for prior years to conform tothm' policy. 4 FINANCIAL & OPERATING DATA Statistical Rscord Earned per share--4%% preferred............... --4W7o preferred................................................. --common (actual)............................................ Dividends per share--4%% preferred . --4V% preferred....................................... --common............................................... Price range--4*4% preferred.................... --preferred....................................... --common...................................................... Net tangible assets per share--com.... Fixed charges earned: Before income taxes................................... After income taxes..................................... Times charges & pfd. divs. earned-----Price range deb. 4*/fes, 1991......................... Net tangible assets (1,000 lg.-tm. debt Net curr. assets per (1,000 lg.-tm. debt Number of shares--4^% preferred -.. --preferred....................................... --common (year end).............................. --common (avg.)................................... --fully diluted.......................................... Financial And Operating Ratios Current assets & current liabilities .... % cash to current assets.............................. % inventory to current assets................. % net current assets to net worth.......... p property depredated apitalizatiotu i long-term debt........................... % preferred stock........................... % common stock and surplus . Sales -r- inventories.............................. Sales + receivables . p sales to net property. % sales to totai l a..s. se_ ts .. % net income to net worth . Pfd. dividends times earned............... Analysis of Operations Sales, less disc., returns, allow., etc. Net sales......................................................... Other revenue............................................. Balance....................... Cost of products sold. Selling admin. & other exp., Depredation, depict. & amort.. Interest & debt expense. Other deductions............. Income before taxes & extraord. item.......... Taxes on income...................................,................... Net income...................................................................... As reported by Company. 1979 (1,984.34 (344.96 (9.20 (9.25 (8.16 (2.375 (4.50 (2.00 50/4-46 80*4-59 39*/8-28*/4 (59.55 5.08 3.53 3.39 (2,549 (893 89,249 513,393 18,953,136 18,852,360 21,961,598 2.08 12.49 51.95 56.35 49.25 38.70 2.60 58.70 4.85 7.50 269.99 113.07 14.62 65.59 % 100.0 98.05 1.95 100.00 79.64 6.64 2.46 2.08 0.70 8.48 3.22 5.26 1978 (1,140.93 (197.72 (6.11 (6.11 (5.40 (2.375 (4.50 (1.575 45-40*6 84-61*6 39*4-241/2 (52.54 4.39 2.73 2.61 78-65 (2,354 (971 103,249 595,778 18,778,519 18,786,478 22,231,258 2.44 15.42 52.62 70.22 50.69 41.98 3.22 54.80 4.20 7.13 261.90 104.45 10.98 39.27 % * 100.00 98.44 1.56 100.00 78.67 6.98 2.70 2.37 1.23 8.05 3.95 4.10 1977 (597.52 (143.23 (4.58 (4.61 (4.12 (2475 (4.50 (1.35 41*4-39*4 94*4-65*4 44y8-28 Vi (47.98 3.01 2.35 2.25 88*4-70 (2,310 (866 144,349 599,778 18,757,790 18,040,939 21,553,207 2.64 5.11 64.13 64.33 51.42 42.61 3.87 53.52 3.57 7.87 233.36 95.54 8.67 27.70 % 100.00 98.35 1.65 100.00 80.94 7.56 3.12 2.66 0.37 5.35 1.74 3.61 1976 (397.28 (124.35 (4.17 (4.16 $3.74 (2.375 (4.50 (1.10 41*4-36*4 91-56*4 42*4-22*4 (45.52 2.59 2.24 2.12 80-55 (2,125 (762 188,949 599,808 17,256,865 17,276,037 20,774,974 2.59 6.90 61.88 65.61 50.41 46.27 4.23 49.50 3.57 7.29 209.92 89.01 8.51 23.63 % 100.00 97.76 2.24 100.00 81.10 7.81 3.36 2.85 0.36 4.52 1.00 3.52 1975 (266.57 (98.02 (3.29 (3.29 (3.01 (2.375 (4.50 (1.00 39-34*4 59-44*4 24*4-14*4 (42.41 2.26 1.97 1.88 59-51*4 (2,082 (746 225,149 601,016 17,247,667 17,274,084 *20,832,423 2.90 7.76 65.19 66.62 49.23 47.18 4.53 48.29 3.05 7.63 170.82 76.19 7.22 1845 % 100.00 97.01 2.99 100.00 76.61 8.79 4.19 3.55 0.38 4.48 1.02 3.46 1974 (436.46 (189.01 $6.43 (6.41 (5.60 (2.375 (4.50 (i.00 40-34 64-42V? 26*4-13Vi (40.08 3.49 2.47 2.37 64Vi-47 (1,883 (649 261,749 601,016 17,243,704 17,296,984 20,855,323 2.65 12.47 S5.78 70.96 45.54 5241 4.41 4348 3.96 7.20 183.13 84.95 14.42 34.16 %_ 100.00 97.28 2.72 100.00 76.13 6.60 3.75 3.77 0.13 9.42 3.84 5.58 40-31 62*4-51 287^ 60 Ml 17,235,71 17,3144 20,8734 97J LONG TERM DEBT 1. Reynolds Metals Co. first sinking fund 4%s, aeries B, due 1981: OPEN MORTGAGE--Authorized, series B, (60,000,000; outstanding, series B, Dec. 31, 1979, (5,236,000. Held by insurance compa nies. Proceeds for construction of aluminum reduction plant and other facilities. DATED--Dec. 12, 1956. MATURITY--June l. 1981. INTEREST--J&D 1. Manufacturers Han over Trust Co., New York, trustee; T.C. Crane, individual trustee. CALLABLE--As a whole, or in part in lots of (1,000,000, at any time to June 1, inch, as fol lows: 1979 .............100.76 1980 .......100.52 1981 ..........100.00 Series B bonds are, under certain condi tions, to extent of (10,000,000, callable on any June 1, 1962-80 in amounts of (1,000,000 or multiples thereof to (4,000,000 at any one time at 100. Callable by application of trust moneys at 100 plus, except on application of certain moneys, applicable premiums above. Callable for sinking fund on each June 1, beginning 1962, at 100. SINKING FUND--Annually, cash (or series B bonds) to redeem SI40,000 to 1968, incl. (2.619,000 1969-77 incl. (2,618,000 1978-81 incl. series B bonds at par. SECURITY--Secured by a first mortgage on all property now owned or hereafter acquired, except all bauxite, fluorspar, gas, coal and oil mined or extracted; all real property outside of U.S. and certain other property, as provid ed. Secured also by pledge of capital stock of Reynolds Jamaica Mines Ltd.; Lydford. En terprises, Ltd., Caribbean Steamship Co., S.A., ana Reynolds Haitian Mines, etc. (all whollyowned subsidiaries). ADDITIONAL BONDS--May be issued (i) on compliance with consolidated net tangible asset ratio; (2) against property additions; (3) against cash; (4) for refunding purposes. DIVIDEND RESTRICTIONS--Company may not pay cash dividends on common or acquire capital stock (except preferred) (1) in excess of 75% of consolidated net earnings af ter Dec. 31, 1965 plus (25,000,000. (2) unless consolidated net current assets equal at least (140,000,000. At Dec. 31, 1979, (198,000,000 of retained earnings were not so restricted. Dividends cannot be paid on Common stock during any period when the Company is in default on the sinking fund requirements of the 4%% Series A preferred stock. 2. Reynolds Metals Co. first sinking fund 4%s, series C, due 1981: OPEN MORTGAGE--Authorized, series C, (100,000,000; outstanding, series C, Dec. 31, 1979, (13,040,000. Held by insurance co nies. DATED--June 12, 1958. MATURITY--Dec. 1, 1981. INTEREST--J&D 1, Manufacturers -<ir%Y over Trust Co., New York, trustee; Tft Crane, individual trustee. CALLABLE--As a whole, or in part in lots! (1,000,000, at 106 to Dec. 1, 1961; redr'"prices yearly thereafter; however, bonds i not be redeemed prior to June 1, 1969 t borrowings at interest rate or cost of less t 4*4% nor unless series A and B bonds are* deemed in same ratio to outstanding amou Also callable at par for sinking fund. SINKING FUND--Annually, cash (or i C bonds) to redeem (335,000 to 1968, (4,347,000 1969-80 incl. (8,693,000 1981 f -- bonds at par. SECURITY, ADDITIONAL BONDS, VT DEND RESTRICTIONS--Same as Noj above. PURPOSE--Proceeds toward building aluminum reduction plant in New York b expand capacity of one or more sheet fabnj ing plants and expand capacity of aluir* plant at Corpus Christi, Tex. 3. Reynolds Metals Co. first $*/*, series 0, < 1987s `, OPEN MORTGAGE--Authorized, sen* i (58,000,000; outstanding, series D, Dec. ^ 1979, (20,000,000. * ILEof at reduo Dec. I, 1 ed pri at ; unless se ted in sai callable _ ;ING F bonds) to 5% < 1963. :tyNo. END 1 above. Reynold! . Other F F, A I, Dec. 3 3. Sinkii ad (8,( i G. Ai . 31,19: 1(2,000,0 0,000 ndin , sen 397,000 ; Dec. . H, ),000,0C ; Reynoi o.cxx ED-- ERE? fcUSTE MOODTS INDUSTRIAL MANUAL OvFIJ privately by 18 insurance companies. ---------June I, 1962. ITY--Dec. 1, 1987. ST--JfitD 1. Manufacturers Hanat Co., New York and T.C. Crane, ;LE--As a whole, or in part in of at least 81,000,000, at 105% to Dec. reduced prices yearly thereafter to 100 Dec. 1, 1986; however, bonds may not be ed prior to June 1, 1975 from funds *1 at interest rate or cost below 5s/8% ess series A, B and C bonds are re in same ratio to outstanding amounts, callable at par for sinking fund (which 7. Other Debt: Includes installment purchase and capitalized lease obligations underlying Pollution Control bonds. Outstanding, Dec. 31, 1979, *271,732,000. For details, see North Alabama Environmental Improvement Au thority Ala.; Port of Portland, Ore.; and Nuec es River Authority, Tex.; Pollution Control & Industrial Development Revenue Bond sec tion in Moody's Municipal & Government Manual. 8. Subsidiary Eurodollar Debentures: Out standing Dec. 31, 1979, *47,500,000 5% subor dinated guaranteed convertible debentures, due 1988, of Reynolds Metals European Capi tal Corp. For complete description see ap pended statement. Feb. 1, 1956 by Dillon, Read 8z Co. and Reyn olds & Co., New York, and associates. LISTED--On NYSE (Symbol: RLM Pr. A). 2. Reynolds Metals Co. 4%% converts# sec ond preferred; par $100: AUTHORIZED--All series, 1,000,000 shares; outstanding, this series, Dec. 31, 1979, 13,393 shares; par *100. ' PREFERENCES--Has second preference for assets and dividends. DIVIDEND RIGHTS--Entitled to cumula tive dividends of *4.50 per share annually, payable quarterly,Feb. 1, etc. DIVIDEND RECORD--Initial dividend of 87% cents paid May 1, 1959; regular dividends paid quarterly thereafter. >JG FUND--Annually, cash (or series _s) to redeem at par, on each Dec. 1, 9. Other Subsidiary Debt: Outstanding Dec. 31, 1979, *33,100,000. DIVIDEND RESTRICTION--Company may not pay cash dividends on or acquire junior stock in excess of consolidated net in 6, 5% of series D bonds outstanding on , 1963. ~Y--ADDITIONAL BONDS-- No. I above. JEND RESTRICTIONS--Same as 1 above. Reynolds Metals Co. first 6%s, series E, due CAPITAL STOCK 1. Reynolds Metals Co. 4%% cumulative pre ferred, series A* per $50: AUTHORIZED--All series, 2,000,000 shares; authorized, series A, 800,000 shares; outstand ing, series A, Dec. 31, 1979, 89,249 shares; par *50. PREFERENCES--Has preference for assets come after Dec. 31, 1957. Junior shares may be acquired for not exceeding proceeds of junior stock sold after Dec. 31, 1957. VOTING RIGHTS--Has no voting power except on default of 4 quarterly dividends or any *lriking fund payment, when, as a class, it has right to elect 2 directors. Consent of 66%% of second preferred re quired to increase authorized preferred or cre mortgage: authorised, series E, and dividends. ate senior stock; change terms adversely or ,000; outstanding, series E, Dec. 31, DIVIDEND RIGHTS--Entitled to cumula merge if rights would t>e affected adversely. 2,796,000; held privately. 1 June l, 1965; due June 1, 1990; inter1; Manufacturers Hanover Trust Co., trustee; individual trustee, T.C. Crane. * le at 105.25 to June 1, 1966; reduced ereafter to 100 after June 1, 1989; not however, prior to June 1, 1975 refunding at an interest cost lower i% nor unless series A, B, C and D _re redeemed in same ratio to outstand- tive dividends of *2.375 per share annually, payable quarterly, Feb. 1, etc., to stock of rec ord about Jan. 10, etc. DIVIDEND RECORD--Initial dividend of 55.42 cents paid May 1, 1956. Regular divi dends paid quarterly thereafter. DIVIDEND RESTRICTIONS--Company may not pay cash dividends on or acquire junior stock (except from proceeds of junior stock sold) in excess of 75% of consolidated net income after Dec. 31, 1954, less dividends Consent of majority of second preferred re quired to increase authorized second preferred or create parity stock. Company may not merge or alter articles providing tor issue of series second preferred adversely affecting rights of any series with out consent of 66%% of series affected. LIQUIDATION RIGHTS--In liquidation, entitled to *100 a share if involuntary and re demption price if voluntary; plus dividends. CALLABLE--As a whole or in part at any nounts of series E; also callable for sink- paid on preferred and equal or prior stock. time on at least 30 days' notice at *100 per nd at par. Company may not pay cash dividends on or share plus accrued dividends. fund, annually cash (or bonds) to acquire junior stock while any series A pre CONVERTIBLE---Into common (if called, es E bonds to each June 1, incl., as ferred sinking fund is in default. on or before 3rd full business day before re 1969-80, *1,064,000; 1981, *3,518,000; *4,895,000; 1988-89, *7,557,000; 1990, >,000. rity, other provisions, same as No. 1 VOTING RIGHTS--Has no voting power except on default of 4 quarterly dividends or of any sinking fund instalment when pre ferred, voting as a class, is entitled to elect one-fourth of directors and not less than 2. If demption date) at *48.16 per share, with no adjustment for dividends; scrip or cash paid in lieu of fractional shares. Conversion privilege protected against dilution; however, no ad justment in conversion price is required on is First Mortgage Bonds: (1) 1st 5%s, , Authorized, *175,000,000; Outstand- 31, 1979, *112,000,000 due June 1, king hind, annually, *6,500,000 19728,000,000 thereafter. (2) 1st 9%s, seAuthorizea *80,000,000; outstanding , 1979, *62,000,000 sinking fund annual1,000 in 1975; *4,000,000 1976-1993 and in 1994. (3) 1st 5.055s, series AA, ; Dec. 31, 1979, *41,549,000. (4) 1st aries BB, outstanding, Dec. 31, 1979, 50. (5) 1st 5.137s, series CC, outstand- 31, 1979, *32,468,000. (6) 1st 8.85s, I, outstanding, Dec. 31, 1979, `,000. All sold privately. Metals Co. convertible subordinate > 4%s, due 1991: Bating Ba 75,000,000; outstg. Dec. 31, 1979, i. Mar. 1, 1966. DUE--Mar. 1, 1991. ST--M&Sl at office of trustee. E---Chase Manhattan Bank (N.A.), NATION--Fully registered, *1,000 ized multiples thereof. BLE--As a whole or in part on at . days' notice to each last day Feb., follows: ..101% 1980...............101% 1981.............101 -100% 1983 100% 1984.............100% ..100% 1986 ..............100% 1991.............100 ble for sinking fund (which see) at -G FUND--Cash (or debs.) to retire 1, 1977-90, *3,500,000 debs, outstg., optional payments. sinking fund default continues for 60 'days, preferred does not vote if clearing default would violate mortgage or loan provisions. Consent of 66%% of preferred required to change adversely terms of perferred (if less than all series affected, then consent of 66^% of series affected is required): sell substantial ly all assets or merge; increase authorized pre ferred; create equal or prior stock or authorize any class of stock convertible into such stock. Consent of majority of series A preferred re quired to issue preferred or equal or prior stock or to issue funded debt (see Additional Preferred, below). LIQUIDATION RIGHTS--In liquidation, entitled to *50 per share, if involuntary ana redemption price, if voluntary; plus dividends. CALLABLE--As a whole or in part on at least 30 days' notice at *51 per share plus ac crued dividends. Also callable for sinking fund (which see) at *50 per share plus dividends. SINKING FUND--Annually and cumula tive, beginning Dec. 31, 1961, cash (or shares acquired otherwise than for purchase of sink ing fund), sufficient to redeem by Feb. 15 fol lowing at sinking fund redemption price 32,000 series A shares. RESTRICTIONS ON PREFERRED AC QUISITION: Under bond mortgage and loan agreements, company may not acquire pre ferred (1) unless thereafter 75% of consolidat ed net earnings after Dec. 31, 1954 exceeds sum of cash dividends on capital stock and amount by which total of capital stock acqui sitions plus unliquidated investment in, and net cost of company indebtedness and stock acquired by, certain non-wholly owned sub sidiaries, exceeds net proceeds of stock sold and (2) if consolidated net current assets would be less than *85,000,000. PREEMPTIVE RIGHTS--None. sue or sale at less than conversion price of (a) treasury shares; (b) common shares on op tions to officers or employees or under any sale plan; (c) until accumulated change in con version price would be 50 cents or more. PREEMPTIVE RIGHTS--None. PURPOSE--Proceeds to reimburse treasury for acquisition of British Aluminum Co. Ltd. ordinary stock. TRANSFER AND DIVIDEND DISBURS ING AGENT--Chase Manhattan Bank, New York. ____ REGISTRAR--Morgan Guaranty Trust Co., New York. OFFERED--(550,000 shares) at *100 per share (proceeds to company, *97.25 per share) on Feb. 11, 1959 by Dillon, Read & Co., Inc., Reynolds & Co., Inc. and Kuhn, Loeb a Co., New York, and associates. LISTED--On NYSE (Symbol: RLM Pr B). 3. Reynolds Metals Co. common; no pen AUTHORIZED--50,000,000 shares; outstand ing, Dec. 31, 1979. 18,953,136 shares; reserved for conversion or 4%% preferred, 1,066,015 shares; reserved for conversion of debentures, 2,043,223 shares; reserved for conversion of subsidiary preferred stock, 10,578 shares; no par. Par changed from no par to *1 Sept. 15, 1955 by 5-for-l split; from *1 to no par Oct 13, 1959, by 3-for-2 split. Original capital stock represented by class A and B no par common shares was converted in October 1929 into one class of common stock (no par) and class A received in ex change 1% shares of common for each share held while the class B common was exchanged on a share for share basis. Dividend Record (In *) (No par class A shares) 1928 ...............1.00 1929 ................ 3.41 -T1BLE--Into com. at any time (if ADDITIONAL PREFERRED--Or any (No par class B shares) or before redemption date) at *59.14 equal or prior stock may not be issued or any 1928-29 ..........Nil djustment for interest or divs. Cash long term debt issued, unless either (a) for 12 (No par common shares) I of fractional shs. Conversion privi'ed against dilution. ^--Not secured; subordinated to :debt. RESTRICTION--Co. may not , divs. on or acquire capital stock in - (1) consolidated net income after J965; (2) proceeds from sale of stock - date; and (3) *35,000,000. ON DEFAULT--Trustee, or 25% out of 16 months preceding consolidated net income plus 12 months' interest on consolidat ed long term debt are at least 2% times sum of annual interest requirements on consolidated long term debt plus annual dividend require ments on all preferred, or (b) sum of consoli dated long term debt and prescribed value (greater of par or stated value, or involuntary liquidation price, excluding dividends) of all preferred, is not worth more than twice con solidated net worth, less aggregate of above 1929 ... ..0.35% 1930 .... ...2.20 1931 ____ .. 1.75 1932 ... .. 1.25 1933-36 . .1.00 1937 ____ ..1.00 1938 ... ..0.15 1939 ____ ...Nil 1940 ____ ..0.30 1941 . .. . .Nil 1942 .... ..0.50 1943-44.. . .0.75 1945 ... ..1.00 1946 .... .. .0.75 1947 ... ..1.00 1948.. ..1.35 1949 .... .. .1.10 1950... ..1.20 1951 ... ..1.10 1952-53 ..1.00 1954... ..1.50 1955____1.62% (*1 par common shares) 1955 ..........0.12% 1956-58.. .0.65 1959 .... 0.52Vb (On no par shares after 3-for-2 split) declare principal due and pay- prescribed value. 1959 ..........0.12% 1960-64... 0.50 1965 ____ 0.73*/. "y*' grace for payment of interest or Above provisions do not apply to issuance 1966 ... . .0.7B% 1967-68.. 0.90 1969 ____ 0.95 of debt for refunding long term debt or to issu 1970 ... ..1.10 1971 ____ 0.85 1972 ____ 0.45 E MODIFICATION--Inden- ance of preferred for refunding stock of such 1973 ... ..0.40 1974-75.. 1.00 1976 .... 1.10 be modified, except as provided, t of 66%% of outstg. debs. -Proceeds to finance portion of ~>gram. * New York Stock Exchange. ^*75,000,000) at 100 (proceeds to Mar. 16, 1966 thru Dillon, Read classes. PURPOSE--Proceeds used toward construc tion of new properties. TRANSFER AND DIVIDEND DISBURS ING AGENT--Chase Manhattan Bank, New York. REGISTRAR--Morgan Guaranty Trust Co., New York. 1977 ... .. 1.35 1978 .... .1.57% 1979 .... 2.00 01980 ____0.55 (jJPlus 25% stock in 1934 and *1 per sHkre in 15year debenture 3%s, 1951 paid in 1936. Stock dividends paid: 1947, 1948, 1950 and 1952, 10%Tl953, 1954 and 1955, 5%; 1958, 2%. divide^nd' reinvestment plan-- ~ and Reynolds & Co., NYC, and OFFERED--(800,000 shares) at *50 per share Co. offers its holders of common stock the op (proceeds to company *48.20 per share) on portunity to buy additional shares of common MOODYS INDUSTRIAL MANUAL through its Automatic Dividend Reinvt8tment and Optional Cash Payment Plan administered by United Virginia Bank, Rich monds Va. Participating share-owners may in vest each quarter from $25.00 to $3,000, in ad dition to their dividend, at their option. Under the Plan, full dividend and any op tional cash payment of participating shareowners is automatically applied to 'purchase of shares priced at average market value on each quarterly dividend payment date; There are no brokers' commissions or any service charges connected with stock purchas es for shareholders. All costs are paid by Com pany. DIVIDEND LIMITATION--See Long Term Debt (No. 1), above. VOTING RIGHTS--Has sole voting rights (one vote per share) with restrictions (see Pre ferred No. 1). PREEMPTIVE RIGHTS--None. TRANSFER AGENTS--Chase Manhattan Bank, New York, and United Virginia Bank, Richmond, Va. DIVIDEND DISBURSING AGENT--Chase Manhattan Bank, New York. REGISTRARS--Morgan Guaranty Trust Co., New York and First & Merchants Na tional Bank, Richmond, Va. OFFERED--On July 6, 1937, the unsub-1 scribed portion of shares originally offered to stockholders was offered publicly at $17 per share by Lehman Bros, and Reynolds & Co., New York. ./ (1,500,000 no par shs.) at $38.50 per sh. on June 29, 1977 thru Dillon, Read & Co., Inc., Goldman Sachs & Co., Reynolds Securities, Inc. and associates. Proceeds for general cor porate purposes. LISTED--On NYSE (Symbol: RLM); unlist ed trading on Pacific, Philadelphia, Cincinnati and Midwest Stock Exchanges. REYNOLDS METALS EUROPEAN CAPITAL CORPORATION (Controlled by Reynolds Metals Co.) History: Incorporated in Delaware in 1968 as a wholly-owned subsidiary of Reynolds Met als Co. (see preceding statement). Business: Co. was formed -for the principal purpose of assisting in the financing of parent Co/s foreign operations. Control: Reynolds Metals Co. owns all outstg. com. stock. Officers D.P. Reynolds, Ghmn. J.E. Blomquist, Pres. J.H. Galea, Vice-Pres. & Gen. Counsel AJD. Reynolds, IIL Vice-Pres. J.T. Hudson, Jr., Vice-Pres. (Fin.) D.C. Bilsing, Contr. R.I. Dawes, Sec. W.G. Reynolds, Jr., Treas. . J.T. Hudson, Jr. D.P. Reynolds J.L. Reynolds J.H. Galea Directors F.R. Edney J.E. Blomquist W.S. Leonhardt Auditors: Ernst & Whinney. moE__nx__deic, uVtrtiAvae2O32ff6ic1e. :T6e6L.01/(8or0B>A4r)Vo2a'u8dx1-S20t-0R0.oad, Rich- Long Term Debt: Reynolds Metals European Capital Corp. subordinated gueranteed convert ible debentures 5s, due 1988: AUTH.--$50,000,000; outstg., Dec. 31, 1979, $45,300,000. DATED--June 1, 1968. DUE--June 1, 1988. INTEREST--J&D1. Principal and interest payable in U.S. dollars {a) at corporate trust office of Chemical Bulk in NYC or (b) subject to applicable laws in country of following of fices, at offices of Chemical Bank New York Tinruusit Cvxoj. imn LiiUonduounu, So.Gu.. Warburg a&t Co. Ltd. in London and Banque Internationale a Luxembourg S.A. in Luxembourg. Payments referred to in (b) above will be made by a U.S. dollar check drawn on a bank in NYC or by transfer to a U.S. dollar account maintained by payee with a bank in NYC. TRUSTEE--Chemical Bank, New York. DENOMINATION--Bearer coupon, $1,000. CALLABLE--As a whole or in part on at least 30 days' notice on or after June 1, 1971 to each May 31, inch, as follows: 1978.............102 1979..............101% 1980..................101 1981.............100% 1988..............100 Debs, may not be so redeemed, however, prior to June 1, 1973 unless current market price for com. stock of Guarantor on each day on which there was such a current market price within the 30 days preceding the 15th day prior to redemption notice is at least 150% of the conversion price in effect on each such day. If, at any time, Co. or Guarantor shall be come obligated to pay additional interest as described under heading "Taxes on Principal, Premium or Interest" as a result of any change in, or amendment to, laws of the U.S. o_o_rr__a_a_nn__yy__cis_h_u_a_b_nd_g_i_ev_is_in_i_o_tn_h__et_h_o_e_f_rf_ei_c_oi_af__la__af_f_pe_pc_1tl:iic_n_ag^tit_oa__nx_aortfi,oonr, execution of, or amendment to, any treaty or treaties affecting taxation to which the U.S. is a party, which change, amendment, change in the application of or execution becomes effec- tive on or after June 1, 1968, debs, may be redeemed as a whole on at lJeeasslt 30 days notice to each May 31, incL, as follows: 1978............101 1979.............100*/4 1980..............100% 1981 ............100% 1988..............100 Also callable for sinking fund (which see) at par. aSxIxN'iKxkINii'iGvj rFUuiN'Di^----/Avnuniiuuaaullyy,, ceamcuhi jJmunwe i1.. 1979-87, to retire debs., cash (or debs.), equal to 5% of debs, outstg. Mar. 1, 1979; plus simi lar optional payments. SECURITY--Direct obligation of issuer. GUARANTEED--Unconditionally as to principal, premium and interest by Reynolds Metals Co. Payment of guarantee subordinat ed to certain senior debt of Guarantor. CONVERTIBLE--Into com. of parent at any time on or after Mar. 31, 1969 (if called, on or before redemption date) at $44.76 a sh. No ad justment for interest on divs. Cash paid in lieu of fractional shs. Conversion privilege protect ed against dilution. TAXES ON PRINCIPAL, PREMIUM OR INTEREST--Co. will pay as additional inter est such amounts as may be necessary to re imburse non-resident alien holders for any present or future U.S. withholding tax. RIGHTS ON DEFAULT--Trustee, or 25% of debs, outstg. may declare principal due and payable (30 days' grace for payment of inter est). INDENTURE MODIFICATION--Inden ture may be modified, except as provided, with consent of 66%% of debs, outstg. LISTED--On New York and Luxembourg ' Stock Exchanges, PURPOSE--Proceeds for parent Co.'s foreign operations. * OFFERED--($50,000,000) at 100 on June 19, 1968 thru Dillon, Read & Co., I~nc., S.G. War-. burg & Co. Ltd. and Reynolds & Co. and asso-/ dates. Capital Stock: Reynolds Metals European Capt>1 tal Corp^ common; $1 par; Auth., 100,000 shs.; --ou--tstg., 1,000 shs. owned by parent co.; par $1. CAPITAL STI I LONG term Issu 1. Conv. subo 1 2. Other long ^capital stc Issu 1. Common . Subject t l years. ^history i- Incorporat r1946, and a< Trion Co. an< L In 1956 ao E Conover, N.< - 1961.) 1966 acc *' makers of fa j biles, by acc; g preferred for "common sha y common. r On Sept, f Corp., Gilbet fluently Uquie . In Jan. 19' kventories of L.Va. V On Nov. p Knitting Co. 5 North Caroli f On Jan. 3 l Products Co f Charlotte, C ^Greensboro '* i' Columbia for [SUBSIDIARI k The follov Band their jur T wholly-owne 5 Fries Textile ~liegel Fiber `"tilth and W [Ware2Shoals FRieser I1 nterr Dallas Sport `lason Athle Hegel Ventu France T da) ciete Fra (France) (. .cnaeffer En - Direct ow ; 49.48%. BUSINESS \ Riegel Te? ogaged pri sle of texti pins, weave Arkets a v> ducts p ese prodt -- and syi Jid distribui | The Comi ily by fr t prinrip: isions anc pparel F en fabric arel; can `or othe g of wo. France 5ME A( t sales.... jst of gool St ac st expei st incon r income k\ , Income b ovision fe t Incoi ted earr tion cast IRetained