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1985 VOL. 2 J-Z MOODY'S INDUSTRIAL MANUAL COVERING NEW YORK, AMERICAN & REGIONAL STOCK EXCHANGES SHEILA S. LAMBERT, Publisher HOWARD G. KIEDAISCH, Associate Publisher MICHAEL A. RABBIA, Manager Manual Dept. BRIAN T. coffey. Manager Supplement Dept. ROBERT P. HANSON, Editor-in-Chief Editorial Staff DANIEL ARCHILLA ANGELICA R. CARROLL ALFRED G. ELUNGHAM ALVIN E. GOUVIA JOHN J. IERACI DIANE R. KRUTZ WILLIAM H. MOORE WILLIAM M. PACCIONE FRANK R. PLATAROTE BERNARDO G. SCERI, JR. EARL STEPHENS MARK L. ZWIEBACK Moody's Investors Service a company of The Dun & Bradstreet Corporation SEE FOLLOWING PAGE FOR COMPLETE LIST OF OFFICES Copyright 1985 by MOODY'S INVESTORS SERVICE, INC. New York All rights reserved. Vi 4346 MOODY'S INDUSTRIAL MANUAL REYNOLDS METALS COMPANY CAPITAL STRUCTURE LONG TERM DEBT Issue Rating 1. S%-5.8% Fitst Mtge. bonds, due 1993............................ 2. 8.*9%-9.3% First Mtge. bonds, due 1998....................... 3. Conv.subord. deb. 4Vis, 1991................................. Ba 3 4. Other debt....................................................................................... 5. Eurodollar conv. deb. 5s, 1988 ........................................... Amount Outstanding $185,100,000 162,900,000 32,400,000 782,200,000 32,500,000 CAPITAL STOCK Par Amount Issue Value Outstanding 1. 4V%conv. second preferred .............................. 100 284,169shs. 2. Common.......................................................................... No par 021,375,818 shs. CDAs reported by Co. based on avg. shs. outstg.; before extraord. gain privately. SSubject to change; see text. Times Charges Earned 1984 1983 Interest Dates Call Price Price Range 1984 2.83 ............. M& S 1 E]iooy8 80 -61 781/2-58^ J &D 1 Text Earned per Sh. Divs. per Sh. Call Price Range 1984 1983 1984 1983 Price 1984 1983 $483.17 ............ $4.50 $4.50 100 88V2- 581/, 87>/j- S6 06.07 0J4.73 1.00 1.00 41 Vs- 26 41%- 2474 1984, cr $0.29 and cum. effect of acctg. change. 1983, dr$0.42. (TJSee text. Sold HISTORY quired at various times (about 96%) of ordi Incorporated in Delaware July 18, 1928 with nary shares of The British Aluminium Co. a perpetual charter, and acquired the foil busi Ltd. Company owns 48% interest and Tube ness and operating assets of United States Investments Ltd., 48% interest in this stock. Foil Co, In Aug,f 1928 purchased entire capital In 1959 the foil business of Venesta was stock of Robertshaw Thermostat Co., incor transferred to a new subsidiary, Venesta porated 1914; also acquired control of Fulton Foils, Limited, and sold to Reynolds T.I. Alu Sylphon Co., incorporated 1926. minium, Ltd. On Jan. 3, 1930 purchased and transferred On Apr. 10, 1961, merged United States Foil to newly organized subsidiary Midland Foil Co. Under the plan United States Foil Co. Co., Inc. substantially all assets of Midland class A and B no par common was reclassified Metal Co. of Chicago. On May 29, 1930 ac- into single class of voting stock on basis of 3 Suired certain assets of Lehmaier, Schwartz & shares for each class A share and one share for b., Inc., New York, manufacturers of metal each class B share; new stock was subsequent foils. On Aug. 8, 1930 purchased net assets of ly exchanged for company stock on basis of Embossed Metal Products Corp., New York. 0,85 share for each United States Foil Co. new On Dec. 18, 1933 acquired net assets of Stan share. dard Art Works, Louisville. Ky. In 1935 ac On July 31, 1961 merged Tilo Roofing Co., quired interest in Richmond Radiator Co. (lat Inc. providing for exchange of one share of ter merged with Rheem Mfg. Co. in 1956). S4.50 convertible second preferred for each 53/4 In Feb., 1936 acquired through Robertshaw common shares of Tilo. Thermostat Co. entire stock of Grayson Heat In Nov. 1961 Reynolds International, Inc., Control, Ltd., Lynwood, Cal. In Mar., 1936 formed Bridgeport Thermostat Co., Inc. to ac quire property and rights obtained from Bridgeport Brass Co. In Mar., 1938 acquired through Robertshaw Thermostat Co. entire 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 common stock of American Thermometer Co. On Oct. 9, 1940 company incorporated Bauxite Mining Com. (Del.) to conduct baux ite exploration and mining activities; name changed to Reynolds Mining Corp., Aug. 9, 1941. On Jan. 23, 1941, organized Reynolds Alloys Co. and Reynolds Ore Co.; former merged in 19S5 and latter dissolved June 13, 1945. In Oct., 1943, purchased stock of Charter Oak Stove Sl Range Co.; name changed to Reyn olds Sales Co. on May 18, 195 name changed to Reynolds Aluminum Recycling Co. on May 12, 1975. In 1945, organized Reynolds Intemacional de Mexico, S.A. (now Reynolds Aluminio, S.A.) to operate an aluminum plant in Mexico. Also purchased plants, and other assets of Aluminum Products Co. of La Grange and Lemont, Illinois. During 1947, Robertshaw Thermostat Co., Fulton Sylphon Co., and Bridgeport Thermo stat Co., wholly-owned subsidiaries were merged into Fulton Sylphon Co. (name subse quently changed to Robertshaw Controls Co.)._On Oct. 31, 1947 securities of latter were sold in the market and company received ap proximately SI2,000,000 in cash and at the same time retained approximately 50% inter est in the common stock of Robertshaw-Ful ton Controls Co. (subsequently reduced). In 1949 acquired outstanding capital stock of Reynolds Research Institute, Inc. (name changed to Reynolds Aluminum Service Corp. on June 17, 1954 and to Reynolds Aluminum Service Corp. of Virginia on Nov. 8, 1957 and to Reynolds Metals Development Co. on July 31, 1963). During 1949, Reynolds Aluminum Co. ac held 50% interest. Name changed to R.M.P. (Quebec) Ltd. May 10, 1965, and to Reynolds Cable Co. Ltd. Aug. I, 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., Kansas 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. t, 1975 assets of Reynolds Guyana Mines, Ltd., were nationalized by Gov't of Guyana. Under an agreement between Com quired from U.S. Government six plants, for merly leased, for $57,581,958. On July 18, 1949, organized Reynolds Ja maica Mines, Ltd., to develop and operate Ja pany, Reynolds Guyana Mines, Ltd., Gov't of Guyana, and Overseas Private Investment Corp., a U.S. gov't agency. Company received payment of $10,000,000 on Feb. 20, 1975 for maica ore properties. Company subscribed nationalized assets. SI,910,500 for common stock and subsequent-, In Sept. 1978 Co. sold its interest in British ly arranged with Mutual Security Agency Aluminum Co. and Reynolds T.I. Aluminum (formerly ECA) for advance to subsidiary of Ltd. for $86,000,000. $14,287,033 against agency's purchase of alu In Nov. 1978, Reynolds Mining Corp., sub minum over 20-year period. sidiary, was merged into Company. In June, 1950, company exercised its option In Dec. 1983, purchased Consolidated Alu to purchase controlling stock interest in minum Corp.'s Plant Complex. Southern States Iron Roofing Co. (name changed to Reynolds Aluminum Supply Co. Nov. 1, 1957 and dissolved in 1965). In Dec., 1952, purchased bauxite rights and assets of Berbice Co., Ltd., in British Guiana. Acquisition included mining leases and exclu sive permissions covering some 490,000 acres, complete mining equipment, houses, washing plant, drying plant, service facilities, short railroad and barge line. Proposed Acquisition: In May 1985 company signed a letter of intent for the purchase of Alcan Aluminum Corp.'s metal goods division. Sale of Mineral Properties; In late 1973 Co. transferred to Texaco, Inc. 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, Pursuant to transfer, Co. received In 1953, organized Reynolds International, initial payment of $15,282,000. Agreement also Inc. to consolidate and expand foreign opera provides that Co. shall receive minimum ad tions. vance royalties of $12,000,000 per year for In 1955 Reynolds Alloys Co., Reynolds Alu next 10 years beginning in 1974 to apply minum Co. and Reynolds Reduction Co. were against first 700 million tons of coal to be merged into parent company. mined. Thereafter Co. is to receive a royalty In 1956 acquired Arrow Brands, Inc., Long of $0.20 per ton of coal mined, with provision Beach, Cal., and Security Chain Link Fence for escalation. Co. has retained certain land, Co. Both later dissolved. coal and water rights in Wyoming to provide In Mar., 1958, acquired minority interest in for future manufacturing operations. Venesta Ltd., London, Eng., manufacturer of In early 1980, Co. sold 51% of its Jamaican aluminum foil, etc., from Ekco Products Co. mining assets and operations and all of its Company and Tube Investments Ltd. land holdings in Jamaica to Jamaican govern (owners of Reynolds T.I. Aluminium Ltd.) ac ment. SUBSIDIARIES & ASSOCIATED COMPANIES Set forth below is a list of the subsidiaries and associated companies of Reynolds Metal* Company. Alreco Metals, Inc. (Del.) Alumina Partners of Jamaica (Partnership) (Del.) Aluminio Reynolds de Venezuela, S.A. (Vene zuela) Aluminum Oxid Stade Gesellschaft mit be*, chrankter Haftung (West Germany) Canadian Reynolds Metals, Limited--Societ* Canadienne de Metaux Reynolds, Limitee (Quebec) Caribbean Steamship Co., S.A. (Panama) El Campo Aluminum Co. (Del.) Eskimo Pie Corp. (Del.) Hamburger Aluminum-Werk Gesellschaft mit beschrankter Haftung (West Germany) Industria Navarra del Aluminio, S.A. (Spain) Jamaica Alumina Security Co., Ltd. (Del.) Jamaica Reynolds Bauxite Partners (Partner ship) (Jamaica) Latas de Aluminio Reynolds, Inc. (Del.) Malakoff Industries, Inc. (Tex.) Manicouagan Power Co.--La Compagnie Hy- droelectrique Manicouagan (Quebec) Reymet Insurance Company Limited (Ber muda) Reynolds Aluminio, Sociedad Anonima (Mex ico) Reynolds Aluminum Deutschland, Inc. (DeL). Reynolds Aluminum Europe, S.A. (Belgium) Reynolds Aluminum Holland B.V, (Nether lands) * Reynolds Aluminiumwerke Gesellschaft mit beschrankter Haftung (West Germany) Reynolds Aluminum Building Products (Del.) Reynolds Aluminum Export Corp. (Del.) Reynolds Aluminum Co. of Canada Ltd. ciete d'Aluminum Reynolds (Canada) T 1 tee (Canada) Reynolds Aluminum Credit Corp. (Del.) Reynolds Aluminum International Servi Inc. (Del.) Reynolds Aluminum Recycling Co. (Misso* Reynolds Australia Mines Pty. Limited (A' tralia) Reynolds of Hawaii, Inc. (Del.) Reynolds International, Inc. (Panama) Reynolds Jamaica Alumina, Ltd. (Del.) Reynolds Jamaica Mines, Ltd. (Del.) Reynolds Kansas City Can Co. (Del.) RMC Properties Ltd. (Del.) Reynolds Metals Development Co. (Del.) Reynolds Metals European Capital (Del.) Reynolds Metals European Finance N.V. (Netherlands, Antilles) Reynolds Philippine Corp. (Philippines) Reynolds Seattle Can Co. (Del.) Robertshaw Controls Co. (Del.) . Societa Lavorazioni Industrial! Metalli S. (Italy) Societa per Azioni Fonderpress (Italy) Southern Gravure Service, Inc. (Kentucky) The names of a number of subsidiaries " associated companies have been omitted cause considered in the aggregate they w not constitute a significant subsidiary. Joint Ventures: In 1980, Reynolds completed implemtion of a basic agreement with Government Jamaica covering Reynolds' bauxite ml-- operation. Reynolds sold a 51% interest tn Jamaican mining assets and substantially of its land holdings to the Government ot maica. Reynolds and the Government otm maica then entered into a partnership 'l will mine and supply bauxite to Reynold? cost. Reynolds will be the Managing P`_ until at least 1987. The Government of j ca granted to Reynolds a mining lease ing sufficient bauxite to operate Re: Texas alumina plant at 82% of its current ed capacity until the year 2020. The Go ment of Jamaica has agreed to a formula taxation, including a production levXthrough 1983. In 1984, Reynolds discontm acquisition of bauxite through its P with the Government of Jamaica. The.#nership had mined and supplied baux*^? Reynolds for use at Reynolds' Sherwin Reynolds now supplies this plant with hf from sources in Australia, Brazil and U Negotiations with the Government of J regarding partnership assets are contmU Reynolds and various other company; participating in the Trombetas bauxite project in Brazil. Reynolds has a 5% ' 1983 'W S 3/s- 24% ddiarie* 1 Metal* nership) . (Venenit be*. -Sodett Limitee la) haft mit ny) a?ta) Partner- mie Hy-J d (Ber-j .a (Me Igium) " Nether*! naft -- " ny) jets tiasou ed (Au Ui S.pJ ) ucky)^ Aries a itted 1 ;y wou MOODTS INDUSTRIAL MANUAL 4347 .rest in the project and has agreed to pur'e approximately 350,000 dry metric tons __f bauxite per year from the project through K099. A study on the potential expansion of *- Trombetas project was initiated in 1980 1 is continuing. .In 1980, Reynolds through a subsidiary -reed to participate in a joint venture to wine bauxite and produce alumina in Western ustralia (the "Worsiey Project")- In 1981, Reynolds transferred the subsidiary to the Vorsley Alumina Trust. Reynolds has the Lrht to purchase the Trust's share of the Vorsley Project's alumina through at least In 1984, Reynolds purchased a 6% interest a Halco (Mining), Inc. ("Halco"). Halco 5 51% and the Guinean government owns 149%. Compagnie des Bauxites de Guinee S**GBG"), which has the exclusive right fhrough 2038 to develop and mine bauxite in a ^0,000 square-mile area in Northwestern ` ~ uinea. Reynolds also acquired rights and ob lations under bauxite purchase contracts nth CBG, which will provide Reynolds with 1 aggregate of approximately 5,098,000 met tons of bauxite for the period 1985 through S995. .JSINESS & PRODUCTS Company is a major worldwide, vertically ntegrated producer of primary and reclaimed iluminum and fabricated aluminum products. 1 terms of primary aluminum production cajrity, it ranks second in the United States nd fourth in the world. The principal operaons of Reynolds are the exploration, mining od processing of bauxite, an aluminum bear- : ore; the refining of bauxite into alumina; reduction of alumina to aluminum; the duction of reclaimed aluminum from alu- num scrap; and the fabrication of alumim and aluminum alloys into a wide range of pifinished and finished products. ` Company has separated its vertically inteated operations into two areas, (1) Alumiitti Production and Processing and (2) Fin_hed Products and Other Sales. ^Aluminum Production and Processing inudes the mining of bauxite, refining of baux- into alumina, ocean shipping of bauxite d alumina, and calcination of petroleum ke, all of which are vertically integrated h aluminum production ana processing Dts. These plants produce and sell primary 1 reclaimed aluminum and a wide range of lifinished aluminum mill products, includ; flat rolled products, extruded and drawn ducts and other aluminum and nonalumi- products. Aluminum Production and sssing also includes the sale of technology various licensing, engineering and other vices related to the production and procing of aluminum. [ Finished Products and Other Sales includes i manufacture and distribution of various hed aluminum products, including flexible aging products, containers, household (including Reynolds Wrap) and printed and aluminum building products. Find Products and Other Sales also includes i sale of miscellaneous nonaluminum prod*,such as building products, plastic film, j-Jting cylinders and machinery. I Products include: I Reynolds Products els and Ore: _-Juminas 1 Cryolite. Aluminum Fluoride (Hydrated Alumina -- /aluminum: h Ingot and billet B Molten I Calcined Coke Kpuicon Kproducts: |g*et, flat and coiled *t, patterned and embossed 1 Stock, bare and coated nks, circles |Aate f^Jate, machined and sculptured *apes, extruded and drawn ube, extruded and drawn P. irrigation, drill pipe KSprging stock iJCturals and structural fabrication 1 sheet bt pole tubing Invert sheet and pastes machine stock 3 products: hencan Classic residential siding and acones carrying equipment gOjyl residential siding JPflit and trim Phalt roofing and accessories Patters, louvers, vents and flashing and Shadowcrest aluminum roofing gles udential colonial columns ^te Guard insulating windows Rate Guard insulating sliding glass doors JJAte Guard extrusions "fhate Guard insulation board **fod extrusions Commercial roofing and siding and accesso ries Reyno-Rail commercial railing systems Farm roofing and siding and accessories Do-It-Yourself Aluminum products Fabricated products: Custom Fabricating-welding, drawing and forming, finishing Integral finned tube Stadium seating Pedestrian bridges Railing systems Textile pirns and bobbins stamping, Reclamation products: Ingot Deoxidizing products Exothermil products Cathode production products Flexible Packaging products: Aluminum foil, plain, printed, colored, coat ed, and die cut sheets and rolls Foil laminations to papers, paper board and plastics with foil surface uncoated, coated, col ored or printed Reyseal heat sealable overwraps Foil heat-sealable pouch materials, printed plastic films Foil laminated folding cartons, printed and embossed Foil laminated labels, printed and embossed Foil containers, formed and folded, uncoat ed, colored, coated Reynolds foodservice foil, film and alumi num containers, Cushion Fold sandwich wraps and bags, inter-folded sheets Reynolds Flex-Can laminated pouch mate rial Special packaging machinery, sales and leasing Reynolon PVC shrink and stretch films Tight wrap oven film and cook-in bags Bag-in-Box Beverage container products: All-aluminum beer and soft drink cans All-aluminum can ends Stay-on-Tab non-detachable can ends Can making machinery Consumer products: Reynolds Wrap household foil Diamond household foil Reynolds Oven Cooking Bags Reynolds Redi-Pan containers Eskimo freezer paper / Electrical products: Stranded aluminum and aluminum conductors SSAC and ACSR Line wire and service drop cables Insulated aluminum power cables alloy Solar products: Reynolds Aluminum solar hot water sys tems Research and Development: Reynolds engages in a continuous program of basic and applied research and develop ment. This program deals with materials, products and processes and involves the de velopment and expansion of products and markets which benefit from aluminum's rela tively light weight, strength, resistance to cor rosion, ease of fabrication, high heat and elec trical conductivity, recyclability and other properties. Reynolds owns certain patents relating to its products and processes based predomi nantly upon its in-house research and devel opment activities. Generally, the patents owned by Reynolds, or under which it is li censed, concern particular products or manu facturing techniques. However, Reynolds' business is not materially dependent on pat ents. PRINCIPAL PLANTS & PROPERTIES Co. operates facilities located as follows: ALUMINUM PRODUCTION & PROCESSING Calcined Coke Baton Rouge, La. Lake Charles, La. Cart>on Anodes Lake Charles, La. Alumina Corpus Christi, Tex. Eagle Pass, Tex. Shipping Corpus Christi, Tex. Power Generation Jones Mills, Ark. Primary Aluminum Arkadelphia, Ark. Listerhill, Ala. Bate Comeau, Longview, Wash. Quebec Massena, N.Y. Jones Mills, Ark. Troutdale, Ore. Recycling and Reclamation Bellwood, Va (2) Listerhill, Ala. (2) Benton Harbor, Mich. Corpus Christi, Tex. Recycling Plants & Service Centers (89) Electrical Products La Malbaie, Quebec Longview, Wash.Malvern, Ark. Mill Products ^ Bellwood, Va. McCook/iU. Bologna, Italy (2) Merxherm, France Hamburg, West Germany Listerhill, Ala. Extruded Products Bellwood, Va. El Campo, Tex. Grand Rapids, Mich. Louisville, Ky. Harderwijk, The Maracay, Netherlands Venezuela Mons-Ghlin, Nachrodt, West Belgium Germany Richmond Hill, St. Therese, Ontario Quebec Torrance, Cal. Powder and Paste Louisville, Ky. Continuous Rolling Hot Spring County, Ark. FINISHED PRODUCTS & OTHER SALES Packaging & Consumer Products Bellwood, Va. Mons-Ghlin, Belgium Grottoes, Va. Richmond. Va. Louisville, Ky. Downingtown, Pa. Building Products Ashville, Ohio Bourbon, Ind. Eastman, Ga. Elizabethtown, Ky. Stratford, Conn. Bristol, Va. Guayama, Puerto Rico Honolulu, Hawaii Houston, Tex. Kansas City, Mo. Rocklin, Cal. Cans San Francisco, Cal. Seattle. Wash. Tampa, Fla. Torrance, Cal. Wallkill, N.Y. Salisbury, N.C. Can Machinery and Syatems Chesterfield County, Va. (2) Richmond, Va. Reynolds Aluminum Supply Company Service Centers (23) RESEARCH & DEVELOPMENT FACILITIES Reduction: Listerhill, Ala. Metallurgical: Richmond, Va. Product & Process Development: Richmond, Va. Electrical Technology: Bellwood, Va. Can Development: Richmond, Va. Packaging Technology: Bellwood, Va. Grottoes, Va. Recycling A Reclamation Technology: Bellwood, Ba. Other Minerals and Fuel Properties Coal: Kentucky, Wyoming Oil & Gas: Texas, Utah, New Mexico, Louisi ana, Kentucky, Oklahoma and Arkansas. Latertte and Clay: Oregon, Washington, Geor gia Limestone: Kentucky, Arkansas Fluorspar (mineral claims): Colorado, Ken tucky OTHER OPERATIONS--DOMESTIC Real Estate Dover, N.J. Pinellas Park. Fla. East Syracuse, N.Y. Providence, R.I. Fort Myers, Fla. South Glens Falls, N.Y. Hartford, Conn. Rockland County, N.Y. Kittanning, Pa. Titusville, Pa. New York Mills, N.Y. Phoenix, Ariz. Philadelphia, Pa. Watertown, N.Y. East Orlando, Fla. Canandaigua, N.Y. Clearwater. Fla. Torrance, Cal. Penfield, N.Y. Shelton, Conn. West Deptford Township, N.J. OTHER OPERATIONS--ABROAD Co. has varying interests in these operations in the following countries: Australia Bauxite and alumina Brazil Bauxite (2), primary aluminum Canada Electirc power generation, mill products, foil packaging, building products Columbia Mill products, extrusions, foil, utensils, ship building Egypt Extrusions Ghana Primary aluminum Guinea Bauxite Italy Mill products, extrusions, foil Jamaica Bauxite and Alumina Mexico Mill products, extrusions, foil WiUlam T. Young, Former Board Chmn., Roy. Philippines Mill products, extrusions, foil, utensils MSiUpapirnoducts, extrusions, foil, wire and cable Venezuela Primary aluminum, mill products, foil, cans, recycling West Germany Alumina, and primary aluminum C.S. Thomas, Vice-President J.H. Taylor, Treasurer D.T. Cowles, Secretary D.C. Bilsing, Controller A Directors (Showing Principal Corporate Affiliations) David P. Reynolds, Chmn. & Chief Exec. Off. oCPf,hmTCCSnoo...d,;*VRiCr^ehnymnio^nl.dR, saRMoJbe'retgartilnsshiaaEwBuaronCupkuoSeunhautanrruoeliCSss'aIpCvn--iCota.';l:, Chmn United Virginia Bank. _ al Crown Companies. Henry R. Unden, Pres., Gas Research Inst), tute; Dir., Sonat Inc., UGI Corp. Thomas A Graves, Jr., Dir., Winterthur scum; Dir., Life Insurance Co. of Virgin^ United Virginia Bank. ^wR^c,icnsMhBaofrBdtuwL.-^,Tqe~cPr1!r^me!ll', F'DcoirrmCe^Fors--^V-m--Si-c-a--e-r^T-kCd<h-I^mnLcn.i,fe\NGrreg^rn*i1. surance Co.. Ashland OH Inc.. First NationS] MANAGEMENT Officers D.P. Reynolds. Chmn. & Chief Exec. Off. United Virginia_______ surance <____________ John EL Blomquist, Vice-Chmn. of Co.; Dir., Bank & Trust Co. of Naples. Robertshaw Controls Co., Reynolds Metals Tom K. Smith, Jr., Former Senior Vice-Pres. W.S. Leonharat, Vice-Chmn. T.E. Blomquist, Vice-Chmn. w.O. Bourke, Pres. & Chief Oper. Off. R.B. Crowl, Exec. Vice-Pres. & Chief Finl. Off. R.G. Holder, Exec. Vice-Pres. (Fabricating European Capital Corp. WWfitlltifaamm Ss>.. LkeBoonnhiiawrudti,, V*,ivcwe-Cv,h,.m...n....&___C_hief Fin. Off. of Co.; Dir., Ro_1b--e---r-t--s--a-Lh-w* ^CoCntrools C.o.., Reynolds Metals European Capital Corp.: Monsanto Co.; Dir., Federal Reserve Bank of St. Louis, Clayton Federal Savings & Loan ^f Association. J.HO.pGera.)lea, Senior Vice-Pres. and Gen. Coun- Royal Bank & Trust Co. William 0. Bourka, Pres. & Chief Oper. Off. of sel , Vice-Pres. (Raw Materials) Co.; Dir.. Dart & Kraft. Inc Abex Corp. RP.mH.LFpeaUthrPerhsyt'onV, ivciec'eP-rretcs's. (Speci_a_l___A__s__s_i_g__n,- ___p__._,,| Murphy, Vice-Pres. of Co Auditors: Ernst & Whinney. Annuel Meeting: Third Wed. in Apr. J.R. McGill, Vice-Pres. (Personnel) T.N. Brown, Vice-Pres. (Mill Prod. Div.) Y.M. Brandt, Vice-Pres. (Flexible Pkg. Div.) J.M. Noonan, Vice-Pres. (Construction Prod. Ralph S, Thomaa, Pres. & Chief Exec. Off., Robertshaw Controls Co.; Dir., Robershaw Controls Co., Bank of Virginia Trust Co.; Bank of Virginia Co. J.K. Flnlayaon, Former Pres., Royal Bank of Shareholder Relations; Donald T. Cowles, Corporate Secretary. TeL: (804)281-2811. Director Meetings: 3rd Friday of each month. No. of Stockholders: Dec. 31, 1983: pfd., 1,447* & Properties Div.) R.E. Hanneman, Vice-Pres. (Corp. Quality Assur. & Tech.) R.D. O'Donnell, Vice-Pres. (Can Div.) EA`e..HD.n... *RLi^*uieU--c-yC-a-n-a-s-so-,,(ldJAJsrll..u,,, VmVViiciicvneeta.--PP.Mrr.eeassr.i.n((_A_eE__l_x&u__tm_ruisniaonMDarivin.e) R.CNh.eBmo. lDlinivg.,) Vice-Pres. (Recycling & Recla Canada, Dir., PanCanadian Petroleum Ltd., Sun Life Assurance Co. of Canada, Royal In surance Group and United Corp. Ltd. Herbert Stein, Prof, of Economics Emeritus, Univ. of Virginia. R. Bern Crowl, Exec. Vice-Pres. & Chief Finl. com., 21,817. No. of Employees: Dec. 31, 1984 (avg.) 28,800. Executive Office: 6601 Broad Street Road, Richmond, VA 23230. Tel.: (804)281-2000. Primary Production (tons) year to Dec. 31: H.mVa. tioHneDltoivn.,) Vice-Pres. (Primary Metals WD.Giv. .)Reynolds, Jr.t Vice-Pres. (Gov't Rela tions & Pub. Affairs) R.N. Reynolds, Vice-President Off. of Co. Richard G- Holder, Exec. Vice-Pres. of Co. Randolph N. Reynolds, Pres. & Chief Exec. Off., Reynolds Aluminum International Serv ices, Inc. 1984 .........................891,700 1983 ......................... 694.200 1982 .........................657,700 1981 ......................... 959,600 1980........................1,073,< INCOME ACCOUNTS COMPARATIVE CONSOLIDATED INCOME ACCOUNT, YEARS ENDED DEC. (taken from reports filed with Securities & Exchange Commission) (in thousand 5)^ Net sales............... Other revenues Balance.................................................... Cost of products sold........................... Selling, aav., res., admin. & gen. exp. Depreciation, deplet and amort.____ Interest and debt expense...................... Other deductions........................................ lac. bef. taxes...............'........................... Taxes on income................................................. 1984 3,728,300 51,200 3,779,500 3,085,200 260,900 153,000 91,600 27,400 161,400 30,400 Income bef. extraord. gain & cum. effect acctg. change ......................... Extraordinary gain ................................... LDCum. effect of acctg. change................. 131,000 6,300 Net Income............................................ Retained earnings, begin, of year____ Preferred dividends..................................... Common dividends--cash.................... 137,300 962,000 1,300 20,800 Retained earnings, end of year 1,077,200 962,000 SUPPLEMENTARYP. &L. DATA 271,300 Maintenance & repairs....................... rpr<"pTaxes other than income............... RReesseua,rsch..a__n_d__d_e__v_e__lo.pment 29,300 51,900 28,300 Includes related portions of items shown under Accts. pay., accr. and "Supplementary P. & L. Data" below statement. other liaabb.................. Restated, see footnote below. 1983-78, excludes payroll taxes. Restated to reflect chge. in acctg. methods in 19821. 984; Related to utilization of state and foreign JJJlyiy*; KCUUCU UV mwamw..*..________ tax loss carryf'or-w---a---r--d-3s~ n--o*t "p-r"envnioiuiasllvy rewcnorrddeedd. 1982: Gain on early extinguishment of debt. 01983-82: See General Note (changes in account ing policies) below. Taxes on inc............... Receivables............... Inventories............... Prepaid exp................ Conv. cun. transi. adj. on net curr. assets.................... Def. chgs. and oth. assets.................... Statement of Changes In Consolidated Finan cial Position, years ended Dec. 31 (in S millions): Cash prov. by oper....................... Cash provided by (used in) oper.: 1984 Net income................................ 131.0 Facility close................. Def. Taxes....................... Other................................. ............. 50.2 (54.0) 1983 (90.8) 81.6 (112.1) (8.3) Termination of salaried pension plan........................... Capital and other invest.: Capital expend.............. Incr. in funds desig. Deprec., amort, and depi........................................... 153.0 for cap. expend. . Invest in and adv. to Funds prov. by oper....................... 280.2 unconsol, subs, and affil. Record of Earnings, years ended Dec. 31 (in thousands of dollars): Year HE1965 . 171111966. I7T711967 (71711968 1969. . 1970.. 1971 .. 1972.. 1973.. 1974 .. 1975.. 1976.... Net Sales 739,796 839,402 803,963 843,753 1,012,652 1,035,166 1,093,248 1,162,183 1,449,751 1,993,189 1,679,262 2,084,414 Balance 96,806 118,060 91.749 66,763 109,696 100,466 44,781 33,084 87.749 216.996 93,887 117,063 MOODY'S INDUSTRIAL MANUAL 4349 Cost and Oth. Inc. & Inc. Bef. Income Year Net Sales Expenses Balance Ded. (Net) Taxes Taxes 1977................. 2,352,755 2,198,063 154,692 dr33,148 121.500 38,300 01978............ 2,883.600 2,609,500 274,100 dr49,600 224.500 110,600 Restated to conform to 1976 presentation. Restated to include equity in undistributed net income of additional associated companies. Net Income 83,200 113,900 Common Dividends 24,024 29,000 Com. Shs. Ou Island. 18,757,790 18,778,519 r Restated to include provision for deferred taxes on undistributed net income of certain unconsolidated subsidiaries and associated companies. 'Before special items, after. $52,146,000 and $2.89. Restated in 1975. Before special items; after, d$636,000 and d$0.24. Restated for accounting change in 1982. Earn. Per Com. Sh. 4.42 5.99 balance sheets COMPARATIVE CONSOLIDATED BALANCE SHEETS, AS OF DEC. 31 (taken from reports filed with Securities & Exchange Commission) ASSETS Current Assets; Cash & marketable securities......................... Receivables......................................................... Inventories .............................................................. Prepaid expenses................................................. 1984 23,300 491,500 795,400 10,700 (in thousand $) 1983 1982 64,600 483,700 636.100 8,900 28,600 364,800 862,100 23,000 1981 20,300 439.500 885.500 8,500 1980 55,800 509,400 729.900 12,300 1979 167,000 467,600 715,200 26,600 1978 199,300 417,500 703,900 12,300 Total current assets..................................... Investments in unconsol, subs, and associated companies ........................................ Prop., pit. & equip.--at cost................................ Less allow, for deprec., depl. & amort........... 1,320,900 226.500 3,561,600 1,673,900 1,193,300 212.100 3.237.800 1.623.800 1,278,500 233,600 3.039,300 1,479,700 1,353,800 261,600 2,860,400 1,350,300 1.307.400 243,200 2.669.400 1,255,900 1,376,400 226,100 2,448,800 1,207,600 1,333.000 199,300 2,236,200 1,137,800 Net property account................................... Deferred charges and other assets................. 1.887,700 347,400 1,614,000 274,100 1,559,600 273,400 1,510,100 214.500 1,413,500 181.900 1,241,200 147,800 1,098,400 130,200 Total........................................................................ LIABILITIES Current Liabilities: Accounts payable and accruals.................... Indebtedness........................................................... Taxes on income.................................................... 3,782,500 565,100 201,300 ............. 3,293,500 589,200 176,900 42,700 3,345,100 422,200 217,800 68,900 3,340,000 461.100 263.700 74,400 3,146,000 2.991,500 430,200 167,600 103,900 2,760,900 345.200 142.100 92,700 Total current liabilities .............................. Lg.-tm. debt (excl. conv. sub. debs.)............... Deferred credits and other liabilities.......... Deferred inc. tax......................................................... Deferred income related to pension plan termination.............................................................. Convertible subordinated debentures.......... 4V2% 2nd pfd................................................................. Common stock ...................................................... Retained earnings...................................................... Conv. curr. trans. adj................................................ 766,400 1,081,200 204,700 154,300 169,900 64,900 28,400 279,400 1,077,200 (43,900) 808,800 849,300 240,400 108,000 67,400 29,900 267,100 962,000 (39,400) 708.900 753.000 206.000 226.900 77,200 61,100 227,000 1,085,000 799,200 702,600 172.700 208.100 94,000 31,200 218,600 1,113,600 701,700 717.500 279.500 106,000 51,300 197,900 937,600 580,000 735,800 284.100 112,000 S9.600 189.200 800.200 Toul....................................................................... Nat currant assets.................................................. PROPERTY ACCT.--ANALYSIS Additions at cost.................................................... Retirements or sales............................................ Other additions--net.......................................... DEPREC. RESERVE--ANALYSIS Additions charged to income......................... Retire, renewals charged to res...................... Other additions...................................................... 3,782,500 554,500 444,100 105,000 (15,300) 153,000 81,600 (21,300) 3,293,500 384,500 146,300 55,300 53,000 3,345,100 569,600 3,340,000 559,200 138,400 49.400 40.400 109,100 14,700 2,991,500 674,700 ts. ffl: 82.900 16,700 2,400 2,760,900 753,000 77,700 25,800 After reserves (1984, $17,000,000). Restated to reflect chg. in acctg. method in 1982. No par shares (aftef deducting treasury shares 1983-79, none; 1978-77, 7,449); 1983, 21,177,424; 1982, 19,811,167; 1981, 19,376,879; 1980, 19,167,666; 1979, 18,953,136; 1978, 18,778,519. Total additions: 1983, $259,200,000; 1982, $235,400,000; 1981, $227,000,000; 1979, $233,500,000; t978, $156,800,000; 1977, $92,977,000. Total deduc tions: 1982, $56,500,000; 1981, $36,000,000; 1979, $20,900,000; 1978, $32,900,000. Incl. $1,900,000 (1981, $2,900,000) 4*/4% Series A pfd. stk. which has mandatory sinking fund require ments. Auditor's Report The following is an excerpt from the Report of the Independent Auditors, Ernst & Whinney, as it appeared in 1984 Annual Report. "In our opihion, the financial statements re ferred to above present fairly the consolidated financial position of Reynolds Metals Compa ny and consolidated subsidiaries at December 31, 1984 and 1983, and the consolidated results of their operations and changes in their finan cial position for each of the years in the three year period ended December 31, 1984, in con formity with generally accepted accounting principles consistently applied during the pe riods subsequent to the change made as of January 1, 1982 in the method of accounting for pot lining costs; and except for the changes during 1983 in the methods of accounting for foreign currency translation and special termination benefits paid to employees which changes are described in note A and with which we concur." Notes To Consolidated Financial Statements Principles of consolidation: The accounts of the company and whollyowned subsidiaries are included in the consoli dated financial statements after elimination of significant intercompany transactions and Profits and losses. Investments in unconsoli dated subsidiaries and associated (20 to 50% owned) companies are carried at cost, adjust ed for the company's equity in their undistrib uted net income. Certain foreign subsidiaries nd associated companies are accounted for n a three-month lag basis. In the opinion of the company's management, the excess cost (approximately $26 million) of investments in consolidated subsidiaries over equity in relatd net assets does not require amortization. inventories: Inventories are stated at the lower of cost or market. Cost of inventories of approximately $470 million in 1984 and $328 million in 1983 is determined by the last-in, first-out method (LIFO). Remaining inventories of approxi mately $325 million in 1984 and $308 million 1983 are determined by the average or first-in, first-out method. If the latter method were ap plied to all inventories, they would increase by approximately $569 million and $112 million at December 31, 1984 and 1983, respectively. In addition, as a result of LIFO, cost of prod ucts sold decreased by $40 million in 1984 and increased by $5 million in 1983 and $19 million in 1982 before considering decreases of $3, $59 and $105 million, respectively, resulting from liquidations of certain LIFO inventories car ried at lower costs prevailing in prior years as compared with current cost. Since certain inventories of the company may be sold at various stages of processing, no practical distinction can be made between finished products, in-process products and other materials and therefore inventories are presented as a single classification. Depreciation, amortization and other expenses: Depreciation of plant and equipment is pro vided by the straightiine method over their es timated useful lives. Capital leases and im provements to leased properties are amor tized generally on the basis of the shorter of the terms of the respective leases or the esti mated useful lives of the related facilities. Pre-operating and start-up expenses appli cable to certain new facilities are amortized by the straight-line method over various periods up to ten years. Expenses in connection with the issuance of long-term debt are amortized in proportion to the amount of debt outstand ing. Investment tax credits: Investment tax credits are accounted for by the flow-through method. Pension plana: The company has several pension plans covering substantially all employees. The pro vision for pension costs includes, as to certain of the plans, amortization of prior service cost over various periods not exceeding forty years. It is the company's policy to fund sub stantially all of its annual pension costs. Earnings per common share: Primary earnings per share are after pre ferred dividend requirements. Fully dilutee earnings assume full conversion of convertibh securities provided the effect is not anti-dilu five. Changes In accounting policy: Effective January 1, 1983 the compan: adopted Financial Accounting Standard Board (FASB) Statement No. 52--Foreig Currency Translation. This statement gene: ally requires that exchange adjustments r< suiting from foreign currency transactions fc recognized currently in income and adjus ments resulting from translation of foreign a sets and liabilities (at the current rate of e change) be reflected in a separate compone of stockholders' equity. In the second quarter of 1983 the compar adopted FASB Statement No. 74--Accountij for Special Termination Benefits Paid to Er ployees and elected retroactive application, accordance with this standard the compai recognizes a liability and an expense wh employees accept an offer of special termir tion benefits and the amount of the benef can be reasonably estimated. In 1982 the co pany deferred and amortized these costs O' a five-year period. The cumulative effect this change reduced net income for 1983 $8.3 million (net of $7,1 million of related come taxes). Effective January 1, 1982 the compe changed its method of accounting for the placement of reduction plant pot linir These linings, which are normally replaced an average four-year operating cycle, been charged to expense at the time of placement. To better reflect its investmen facilities and to achieve a better matchinj costs with revenues, the company now c talizes these replacement lining costs and ortizes them over their estimated produc lives. The prior years' cumulative effect of accounting change increased 1982 net inc by $26.8 million (net of $23.3 million of rel income taxes) and increased net prop* plant and equipment by $50.1 million. Th feet of this accounting change was not ma al to the 1962 results of operations exclu the extraordinary gain and cumulative e of accounting change. 4350 MOODY'S INDUSTRIAL MANUAL FINANCIAL & OPERATING DATA Statistical Record Earned per share--4L/2% preferred............... --common (year end shs.).............................. 1984 $483.17 $6.31 1983 efts'is $0.26 1981 $276.95 $4.39 1980 $436.96 $9.29 1979 $344.96 $9.20 W78 $19fi:36 $5.99 --|T}common (avg. shs.): Inc. bef. extraord. gain & cum. effectacctg. chge................................................... Extraord. gain............................................... Cum. effect, acctg. chge............................. $6.07 cft0.29 eft4.73 dft0.42 <ftl.34 c/SO.23 eft 1.37 $4.40 $5.91 Net income.................................................. --UJfully diluted.................................................... Dividends per share---4*4% preferred.......... --41/2% Preferred................................................. --common................................................................ Price range--4V2% preferred.............................. --common................................................................. Net tangible assets per share--com................. $6.36 $5.97 $4.50 $1.00 88i/2-58y* 41%-26 $60.89 dSS.15 N.A. $2,375 $4.50 $1.00 871/2-56 41*/s-24% $56.18 $0.26 N.A. $2,375 $4.50 $1.75 57*4-43 273/8-18*4 $66.23 $4.40 $4.08 $2,375 $4.50 $2.40 8I-48V2 39*4-23i/g $68.63 $9.32 $8.32 $2,375 $4.50 $2,25 82-59 407/g-2714 $66.90 $5.91 $5.22 $2,375 $4.50 $1,575 84-61V2 393/4-24y2 $52.41 Fixed charges earned: Before income taxes............................................ After income taxes............................................... Times charges & pfd. divs. earned................. Price range deb. 4l/2S, 1991............... .................. Net tangible assets $1,000 lg.-tm. debt.......... Net curt, assets per $1,000 lg.-tm. debt .... Number of shares--4*4% preferred............... --l3%preferTed.................................................... --4y3% preferred................................................. --common (year end)........................................ --Qcommon (avg.)............................................ --fitfully diluted.................................................... 2.83 2.S0 2.46 80-61 $2,240 $513 284,169 21,557,739 21,375,818 23,305,066 78i/8-58V8 $2,260 $424 299,427 21,177,424 20,148.481 0.49 1.07 0.80 60-49 $2,688 $700 38,000 600,000 310,784 19,811,167 19,674,453 2.76 2.38 2.21 72-511/4 $2,788 $733 58,000 312,052 19,376,879 19,317,286 21,832,211 5.25 3.69 3.57 75-571/2 $2,784 $787 70,389 412,620 19,167,666 19,111,596 21,888.824 4.18 2.61 2.51 78-65 $2,339 $961 103,249 595,778 18,778,519 18,786.478 22,231,258 Financial And Operating Ratios Current assets & current liabilities................. % cash to current assets........................................ % inventory to current assets........................... % net current assets to net worth.................... % property depreciated........................................ 1.72 1.76 60.22 41.35 47.00 1.47 5.41 53.31 31.53 50.15 1.80 2.24 67.43 41.48 48.69 1.69 1.50 65.41 41.02 47.21 1.81 4.27 55.83 44.11 47.05 2.30 14.95 52.81 71.78 50.88 Capitalization: % long-term debt................................................. % preferred stock................................................. % common stock and surplus...................... Sales -T- inventories.................................................... Sales receivables.................................................... % sales to net property.......................................... % sales to total assets............................................ % 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..................................... Depreciation, depict. & amort,........................... Interest & debt expense.......................................... Other deductions.............................. .................... Income before taxes & extraord. item.......... Taxes on income......................................................... Extraord. items........................................................... Cum. eff. of acct. chge.............................................. Net income.................................................................... 44.64 1.17 54.19 4.69 7.59 197.50 98.57 3.63 10.24 % 100.00 98.65 1.35 100.00 81.63 6.90 4.05 2.42 0.72 4.28 0.80 0.17 3.65 42.63 1.41 55.96 5.25 6.91 206.99 101.44 % 100.00 98.60 1.40 100.00 89.32 7.20 4.32 2.74 3.37 d6.95 cr4.26 d/0.24 2.93 37.20 2.79 60.01 3.46 8.20 191.87 89.46 0.56 100.00 97.84 2.16 100.00 85.57 7.97 4.53 3.40 1.27 d2.74 crl.97 crO.15 ciO.88 0.26 35.87 1.47 62.66 3.98 8.05 234.26 105.92 6.36 % 100.00 97.62 2.38 100.00 85.03 6.83 3.00 1.86 3.28 0.88 35.93 2.00 62.07 5.16 7.40 266.66 119.80 13.63 81.95 % 100.00 98.02 1.95 100.00 81.28 6.60 2.39 1.74 0.57 7.40 2.71 4.69 42.76 3.25 53.99 3.34 5.64 214.20 85.22 10.98 37.96 % 100.00 98.17 1.83 100.00 79.06 7.05 2.73 2.40 1.12 7.64 3.77 3.87 (jjAs reported by Company. LONG TERM DEBT First Mortgage bonds outstg., Dec. 31, 1984, $348,000,000 comprised of: (1) $185,100,000 5%-5.8% first mortgage bonds, due 1993. (2) $162,900,000 8.9%-9.3% first mortgage bonds, due 1998. 4. Other Debt: Outstg., Dec. 31, 1984, $782,200,000 comprising: (1) $505,100,000 10%-16V2% mortgage and other notes pay. thru 2009. (2) $220,900,000 5.9%-12.3% industrial and environmental control revenue bonds due thru 2014. (3) $56,200,000 8.0%-8.3% other debt due C__A___L_L_A___B__L__E_--A___s- awhole or in part at any time on at least 30 days' notice at $100 per share plus accrued dividends. CONVERTIBLE--Into common (if called, on or before 3rd full business day before re demption date) at $46.92 per share, with no adjustment for dividends; scrip or cash paid in lieu of fractional shares. Conversion privilege 3. Reynolds Metals Co. convertible subordinat ed debenture 4V**> due 1091: Rating--Ba3 AUTH.--$75,000,000; outstg. Dec. 31, 1984, $32 400 000. DATED--Mar, 1, 1966. DUE--Mar. 1, 1991. INTEREST--M&Sl at office of trustee. TRUSTEE--Chase Manhattan Bank (N.A.), NYC. DENOMINATION--Fully registered, $1,000 and authorized multiples thereof. CALLABLE--As a whole or in part on at least 30 days' notice to each last day Feb., incl., as follows: 1985 .............IOOV4 1986..............100Vs 1991..............100 thru 1998. 5. Subsidiary Eurodollar Debentures: Out standing Dec. 31, 1984, $32,50p,000 5% subor dinated guaranteed convertible debentures due 1988 of Reynolds Metals European Capi tal Corp. For complete description, see ap pended statement. CAPITAL STOCK 1. Reynolds Metals Co. 4V,% convertible sec ond preferred; par S10(k AUTHORIZED--All series, 1,000,000 shares; outstanding, this series, Dec. 31, 1984, 284,169 shares; par $100. PREFERENCES--Has second preference for protected against dilution; however, no ad justment in conversion price is required on is 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 Lo,, Also callable for sinking fund (which see) at assets and dividends. New York. par. DIVIDEND RIGHTS--Entitled to cumula OFFERED--(550,000 shares) at $100 per SINKING FUND--Cash (or debs.) to retire tive dividends of $4.50 per share annually, share (proceeds to company, $97.25 per share) each Mar. 1, 1977-90, $3,500,000 debs, outstg.. payable quarterly, Feb. 1, etc. on Feb. 11, 1959 by Dillon, Read & Co., Inc., plus similar optional payments. DIVIDEND RECORD--Initial dividend of Reynolds & Co., Inc. and Kuhn, Loeb & Co- CONVERTIBLE--Into com. at any time (if _871_/2__c__e__n_t_s_p__a_i_d___M__a__y l, 19S9; regular dividends New York, and associates. called, on or before redemption date) at $57.27 pajd quarter.ly th erea'f-teer. LISTED--On NYSE (Symbol: RLM Pr B). a sh. No adjustment for interest or divs. Cash _p__a:iJd in1l:ieu_oxff--fractionaIl kskhes. PCnonntveorresiinonn tpirtiivvii- lege protected against dilution. SECURITY--Not secured; subordinated to all senior debt. DIVIDEND RESTRICTION--Co. may not pay cash divs. on or acquire capital stock in DIVIDEND RESTRICTION- Company may no-t p--a.y cash dividends on or acquire junior stock in excess of consolidated net in 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 2. Reynolds Metals Co. common; no par AUTHORIZED--100,000,000 shares; out standing, Dec. 31, 1984, 21,557.739 shares; re served for conversion of preferred, 605,27y shares; reserved for conversion of debentures. 1,314,982 shares; reserved for options, 594,57.* excess .of (1) consolidated net income after Dec. 31, 1965; (2) proceeds from sale of stock after such date; and (3) $35,000,000. RIGHTS ON DEFAULT--Trustee, or 25% of debs, may declare principal due and pay able (30 days' grace for payment of interest or sinking fund). INDENTURE _ _ _,, ,, , MODIFICATION--Inden except on default of 4 quarterly dividends or any sinking 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 ate senior stock; change terms adversely or merge if rights would be affected adversely. Consent of majority of second preferred re shares; no par. _ Par changed from no par to $1 Sept, 1955 by 5-for-l split; from $1 to no par Oct U. 1959, by 3-for-2 split. L . c<s Original capital stock represented by class A and B no par common shares was convertea in October 1929 into one class of common stock (no par) and class A received in ex ture may be modified, except as, provided, quired to increase authorized second preferred change 1% shares of common for each share with consent of 66%% of outstg. debs. PURPOSE--Proceeds to finance portion of expansion program. LISTED---On New York Stock Exchange. OFFERED--($75,000,000) at 100 (proceeds to Co., 98%) on Mar. 16, 1966 thru Dillon, Read & Co., Inc., and Reynolds & Co., NYC, and associates. or create parity stock. Company may not merge or alter articles providing for 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. held while the class B common was exchange0 on a share for share basis. Dividend Record (in $) (No par class A shares) 1928 ..............1.00 1929 .................3.41 (No par class B shares) 1928-29 ..........Nil MOODTS INDUSTRIAL MANUAL *>01 (No par common shares) 1929 ... ..0.351/2 1930 .......... . .2.20 1931 ... ... .1.75 1932 . .. . . 1.25 GJ1933-36 . .. 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 1 946 ........... . .0.75 1947.. ____1.00 IT11948-.. ..1.35 1949 .......... . .1.10 01950.. ____1.20 1951 ... ..1.10 01952-53. . .1.00 1954.. ____1.50 01955.. . -1.62% (81 par common shares) 19S5 ... . .0.12% 1956-58 . . .0.65 1959 ... ..0.52% (On no par shares after 3-for-2 split) 1959 ..........0.12% 1960*64 .0.50 1965 ..........0.73% 1966 .......... 0.78% 1967-68 .0.90 1969 .......... 0.95 1970 .1.10 1971 .0.85 1972 .......... 0.45 1973 .0.40 1974-75 .1.00 1976 ..........1.10 1977 .1.35 1978 .. .1.57% 1979 ............2.00 1980 .2.25 1981 .. .2.40 1982 ..........1.75 _ 1983-84. . 1.00 01985. .0.25 (TJPlus 25% stock in 1934 and SI per share in 15- year debenture 3%s, 1951 paid in 1936. Stock dividends paid: 1947, 1948, I950and 1952, 10%; 1953, 1954 and 1955, 5%; 1958, 2%. To Apr. 1. DIVIDEND REINVESTMENT PLAN-- Co. offers its holders of common stock the op portunity to buy additional shares of common stock through its Automatic Dividend Rein vestment and Optional Cash Payment Plan administered by United Virginia Bank, Rich mond, Va. Participating share-owners may in vest each quarter from 825.00 to 83,000, 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. Ail costs are paid by Com pany. DIVIDEND LIMITATION--See Long Term Debt. 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--Chase Manhattan /Bank, N.A., New York and Sovran Bank; N.A., Richmond, Va. OFFERED--On July 6, 1937, the unsub scribed portion of shares originally offered to stockholders was offered publicly at 817 per share by Lehman Bros, and Reynolds & Co., New York. (1,500,000 no par shs.) at 838.50 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, Chmn, W.S. Leonhardt, Vice-Chmn. E. Blomquist, Pres. .B. Crowl, Exec. Vice-Pres. J.H. Galea, Vice-Pres. & Gen. Counsel A.D. Reynolds, III, Vice-Pres. D.C. Bilsing, Contr. R.I. Dawes, Sec. J.H. Taylor, Treas. R.B. Crowl D.P. Reynolds J.H. Galea Directors W.O. Bourke T.E. Blomquist W.S. Leonhardt Auditors: Ernst & Whinney. Executive Office: 6601 Broad St. Road, Rich mond, VA 23261. Tel.: (804)281-2000. Long 'Term Debt: Reynolds Metals European Capital Corp. subordinated guaranteed convert ible debentures 5s, due 1988: AUTH.--850,000,000; outstg., Dec. 31, 1983, 835,000,000. DATED--June 1, 1968. DUE--June 1, 1988. INTEREST--J&Dl. Principal and interest payable in U.S. dollars (a) at corporate trust office of Chemical Bank in NYC or (b) subject to applicable laws in country of following of fices, at offices of Chemical Bank New York Trust Co. in London, S.G. Warburg & 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, 81,000. CALLABLE--As a whole or in part on at least 30 days' notice at 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. or any subdivision thereof affecting taxation, or any change in the official application of, or 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 least 30 days no tice at 100. Also callable for sinking fund (which see) at ar. INKING FUND--Annually, each June l, 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 rime on or after Mar. 31, 1969 (if called, on or before redemption date) at 843.68 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--Go. 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--(850,000,000) at 100 on June 19, 1968 thru Dillon, Read Sc Co., Inc., S.G. War burg & Co. Ltd. and Reynolds & Co. and asso ciates. Capital Stock: Reynolds Metals European Capi tal Corp.; common; $1 pan Auth., 100,000 shs.; outstg., 1,055 shs. all owned by parent co.; par 81.