SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 20, 1999
REYNOLDS METALS COMPANY
-----------------------
(Exact name of registrant as specified in its charter)
Delaware 1-1430 54-0355135
-------- ------ ----------
(State of Incorporation) (Commission (IRS Employer
File Number) Identification Number)
6601 West Broad Street
P.O. Box 27003
Richmond, Virginia 23261-7003
-----------------------------
(Address of Principal Executive Offices,
including zip code)
(804) 281-2000
--------------
(Registrant's Telephone Number, including area code)
<PAGE>
Item 5. Other Events.
On July 20, 1999, the Registrant improved its segment reporting. Corporate
amounts have been removed from the Other category and are now presented as
separate reconciling items. With this reclassification, the financial
information about the operations in the Other category will be more clearly
presented. The Registrant's Other category consists principally of operations in
emerging markets, European extrusion operations and investments in Canada, Latin
America and Saudi Arabia. The reclassified segment disclosures for the quarters
ended March 31, 1999 and 1998, other interim periods of 1998, and the years
ended December 31, 1998, 1997 and 1996 appear at Exhibit 99 of this report and
have not been audited.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
c) Exhibits.
Exhibit 99 - Reclassified segment disclosures related to the
Registrant's financial reports for the quarters ended
March 31, 1999 and 1998, other interim periods of
1998, and the fiscal years ended December 31, 1998,
1997 and 1996
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
REYNOLDS METALS COMPANY
By: Allen M. Earehart
--------------------------------
Allen M. Earehart
Senior Vice President and
Controller
Dated: July 20, 1999
3
<PAGE>
INDEX TO EXHIBITS
Exhibit 99 - Reclassified segment disclosures related to the
Registrant's financial reports for the quarters ended
March 31, 1999 and 1998, other interim periods of
1998, and the fiscal years ended December 31, 1998,
1997 and 1996
EXHIBIT 99
COMPANY OPERATIONS
Certain amounts have been reclassified to conform to the 1999 presentation. The
principal reclassification was to move corporate amounts from the Other category
to reconciling items. The reclassified disclosures for the first quarter of 1999
and 1998, other interim periods of 1998 and for the years 1998, 1997 and 1996
are as follows:
<TABLE>
<CAPTION>
Packaging Construction
Base and and
Materials Consumer Distribution
- ------------------------------------------------------------------------------------------------------------------
FIRST QUARTER 1999
<S> <C> <C> <C>
Customer aluminum shipments 212 33 47
Intersegment aluminum shipments 56 -- --
- ------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 268 33 47
==================================================================================================================
Revenues:
Aluminum $302 $178 $159
Nonaluminum 75 134 78
Intersegment revenues-- aluminum 81 -- --
- ------------------------------------------------------------------------------------------------------------------
Total revenues $458 $312 $237
==================================================================================================================
Segment operating income (loss) $ 14 $ 26 $ 8
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects - net
- ------------------------------------------------------------------------------------------------------------------
Corporate operating income
Interest expense
Taxes on income
Cumulative effect of accounting change
- ------------------------------------------------------------------------------------------------------------------
Net Income (Loss)
==================================================================================================================
FIRST QUARTER 1998
Customer aluminum shipments 145 30 46
Intersegment aluminum shipments 99 -- --
- ------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 244 30 46
==================================================================================================================
Revenues:
Aluminum $247 $175 $165
Nonaluminum 115 136 82
Intersegment revenues-- aluminum 163 -- --
- ------------------------------------------------------------------------------------------------------------------
Total revenues $525 $311 $247
==================================================================================================================
Segment operating income $ 79 $ 22 $ 8
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects - net
- ------------------------------------------------------------------------------------------------------------------
Corporate operating income
Interest expense
Taxes on income
Cumulative effect of accounting change
- ------------------------------------------------------------------------------------------------------------------
Net Income
==================================================================================================================
</TABLE>
The reconciling amounts for nonaluminum revenues relate to corporate activities.
<PAGE>
<TABLE>
<CAPTION>
Total Reconciling
Transportation Restructuring Other Segments Items Consolidated
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
17 -- 14 323 -- 323
-- -- -- 56 (56) --
- -------------------------------------------------------------------------------------------------------------------------
17 -- 14 379 (56) 323
=========================================================================================================================
$94 $ -- $ 25 $ 758 $ -- $ 758
-- -- 1 288 22 310
-- -- -- 81 (81) --
- -------------------------------------------------------------------------------------------------------------------------
$94 $ -- $ 26 $1,127 $ (59) $1,068
=========================================================================================================================
$(2) $ -- $ 3 $ 49 $ 49
2
(47)
--
- -------------------------------------------------------------------------------------------------------------------------
4
(20)
6
--
- -------------------------------------------------------------------------------------------------------------------------
$ (10)
=========================================================================================================================
16 116 9 362 -- 362
-- 2 -- 101 (101) --
- -------------------------------------------------------------------------------------------------------------------------
16 118 9 463 (101) 362
=========================================================================================================================
$87 $476 $ 30 $1,180 $ -- $1,180
-- 5 1 339 13 352
-- 7 -- 170 (170) --
- -------------------------------------------------------------------------------------------------------------------------
$87 $488 $ 31 $1,689 $(157) $1,532
=========================================================================================================================
$-- $ 38 $ 1 $ 148 $ 148
3
(33)
--
- -------------------------------------------------------------------------------------------------------------------------
118
(34)
(26)
(23)
- -------------------------------------------------------------------------------------------------------------------------
$ 35
=========================================================================================================================
</TABLE>
<PAGE>
COMPANY OPERATIONS -- continued
<TABLE>
<CAPTION>
Packaging Construction
Base and and
Materials Consumer Distribution
- ------------------------------------------------------------------------------------------------------------------
SECOND QUARTER 1998
<S> <C>
Customer aluminum shipments 168 37 46
Intersegment aluminum shipments 82 -- --
- ------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 250 37 46
==================================================================================================================
Revenues:
Aluminum $ 268 $205 $170
Nonaluminum 114 144 81
Intersegment revenues-- aluminum 126 -- --
- ------------------------------------------------------------------------------------------------------------------
Total revenues $ 508 $349 $251
==================================================================================================================
Segment operating income (loss) $ 95 $ 40 $ 8
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects -- net
- ------------------------------------------------------------------------------------------------------------------
Corporate operating income (loss)
Interest expense
Taxes on income
Extraordinary loss
- ------------------------------------------------------------------------------------------------------------------
Net Income (Loss)
==================================================================================================================
SIX MONTHS ENDED JUNE 30, 1998
Customer aluminum shipments 313 67 92
Intersegment aluminum shipments 181 -- --
- ------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 494 67 92
==================================================================================================================
Revenues:
Aluminum $ 515 $380 $335
Nonaluminum 229 280 163
Intersegment revenues-- aluminum 289 -- --
- ------------------------------------------------------------------------------------------------------------------
Total revenues $1,033 $660 $498
==================================================================================================================
Segment operating income (loss) $ 174 $ 62 $ 16
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects -- net
- ------------------------------------------------------------------------------------------------------------------
Corporate operating income (loss)
Interest expense
Taxes on income
Extraordinary loss
Cumulative effect of accounting change
- ------------------------------------------------------------------------------------------------------------------
Net Income (Loss)
==================================================================================================================
The reconciling amounts for nonaluminum revenues relate to corporate activities.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Reconciling
Transportation Restructuring Other Segments Items Consolidated
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
15 103 9 378 -- 378
-- 2 -- 84 (84) --
- -------------------------------------------------------------------------------------------------------------------------
15 105 9 462 (84) 378
=========================================================================================================================
$80 $461 $25 $ 1,209 $ -- $1,209
-- 4 11 354 16 370
-- 5 -- 131 (131) --
- -------------------------------------------------------------------------------------------------------------------------
$80 $470 $36 $ 1,694 $(115) $ 1,579
=========================================================================================================================
$(7) $ 42 $ 1 $ 179 $ -- $ 179
1
(38)
(304)
- -------------------------------------------------------------------------------------------------------------------------
(162)
(33)
72
(3)
- -------------------------------------------------------------------------------------------------------------------------
$ (126)
=========================================================================================================================
31 219 18 740 -- 740
-- 4 -- 185 (185) --
- -------------------------------------------------------------------------------------------------------------------------
31 223 18 925 (185) 740
=========================================================================================================================
$167 $937 $55 $ 2,389 $ -- $ 2,389
-- 9 12 693 29 722
-- 12 -- 301 (301) --
- -------------------------------------------------------------------------------------------------------------------------
$167 $958 $67 $ 3,383 $(272) $ 3,111
=========================================================================================================================
$ (7) $ 80 $ 2 $ 327 $ 327
4
(71)
(304)
- -------------------------------------------------------------------------------------------------------------------------
(44)
(67)
46
(3)
(23)
- -------------------------------------------------------------------------------------------------------------------------
$ (91)
=========================================================================================================================
</TABLE>
<PAGE>
COMPANY OPERATIONS -- continued
<TABLE>
<CAPTION>
Packaging Construction
Base and and
Materials Consumer Distribution
- ------------------------------------------------------------------------------------------------------------------------
THIRD QUARTER 1998
<S> <C>
Customer aluminum shipments 172 34 48
Intersegment aluminum shipments 94 -- --
- ------------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 266 34 48
========================================================================================================================
Revenues:
Aluminum $ 263 $ 191 $ 176
Nonaluminum 85 150 79
Intersegment revenues-- aluminum 156 -- --
- ------------------------------------------------------------------------------------------------------------------------
Total revenues $ 504 $ 341 $ 255
========================================================================================================================
Segment operating income (loss) $ 65 $ 34 $ 13
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects -- net
- ------------------------------------------------------------------------------------------------------------------------
Corporate operating income
Interest expense
Taxes on income
Extraordinary loss
Cumulative effect of accounting change
- -----------------------------------------------------------------------------------------------------------------------
Net Income
=======================================================================================================================
NINE MONTHS ENDED SEPTEMBER 30, 1998
Customer aluminum shipments 485 101 140
Intersegment aluminum shipments 275 -- --
- -----------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 760 101 140
=======================================================================================================================
Revenues:
Aluminum $ 778 $ 571 $ 511
Nonaluminum 314 430 242
Intersegment revenues-- aluminum 445 -- --
- -----------------------------------------------------------------------------------------------------------------------
Total revenues $1,537 $1,001 $ 753
=======================================================================================================================
Segment operating income (loss) $ 239 $ 96 $ 29
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects -- net
- -----------------------------------------------------------------------------------------------------------------------
Corporate operating income
Interest expense
Taxes on income
Extraordinary loss
Cumulative effect of accounting change
- ----------------------------------------------------------------------------------------------------------------------
Net Income
======================================================================================================================
</TABLE>
The reconciling amounts for nonaluminum revenues relate to corporate activities.
<PAGE>
<TABLE>
<CAPTION>
Total Reconciling
Transportation Restructuring Other Segments Items Consolidated
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
15 88 9 366 -- 366
-- -- -- 94 (94) --
- ----------------------------------------------------------------------------------------------------------------------
15 88 9 460 (94) 366
======================================================================================================================
$75 $299 $26 $1,030 $ -- $1,030
-- 1 10 325 13 338
-- -- -- 156 (156) --
- ----------------------------------------------------------------------------------------------------------------------
$75 $300 $36 $1,511 $(143) $1,368
======================================================================================================================
$(7) $ 31 $(1) $ 135 $ -- $ 135
1
(27)
315
- ----------------------------------------------------------------------------------------------------------------------
424
(27)
(135)
(60)
--
- ----------------------------------------------------------------------------------------------------------------------
$ 202
======================================================================================================================
46 307 27 1,106 -- 1,106
-- 4 -- 279 (279) --
- ----------------------------------------------------------------------------------------------------------------------
46 311 27 1,385 (279) 1,106
======================================================================================================================
$242 $1,236 $ 81 $3,419 $ -- $ 3,419
-- 10 22 1,018 42 1,060
-- 12 -- 457 (457) --
- ----------------------------------------------------------------------------------------------------------------------
$242 $1,258 $ 103 $4,894 $(415) $ 4,479
======================================================================================================================
$(14) $ 111 $ 1 $ 462 $ 462
5
(98)
11
- ----------------------------------------------------------------------------------------------------------------------
380
(94)
(89)
(63)
(23)
- ----------------------------------------------------------------------------------------------------------------------
$ 111
======================================================================================================================
</TABLE>
<PAGE>
COMPANY OPERATIONS -- continued
<TABLE>
<CAPTION>
Packaging Construction
Base and and
Materials Consumer Distribution
- ---------------------------------------------------------------------------------------------------------------------
FOURTH QUARTER 1998
<S> <C>
Customer aluminum shipments 183 40 44
Intersegment aluminum shipments 79 -- --
- ---------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 262 40 44
=====================================================================================================================
Revenues:
Aluminum $277 $216 $170
Nonaluminum 88 175 72
Intersegment revenues-- aluminum 127 -- --
- ---------------------------------------------------------------------------------------------------------------------
Total revenues $492 $391 $242
=====================================================================================================================
Segment operating income (loss) $ 51 $ 60 $ 10
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects -- net
- ---------------------------------------------------------------------------------------------------------------------
Corporate operating income (loss)
Interest expense
Taxes on income
- ---------------------------------------------------------------------------------------------------------------------
Net Income (Loss)
=====================================================================================================================
</TABLE>
The reconciling amounts for nonaluminum revenues relate to corporate activities.
<PAGE>
<TABLE>
<CAPTION>
Total Reconciling
Transportation Restructuring Other Segments Items Consolidated
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
17 84 10 378 -- 378
-- -- -- 79 (79) --
- ----------------------------------------------------------------------------------------------------------------------
17 84 10 457 (79) 378
======================================================================================================================
$94 $198 $36 $ 991 $ -- $ 991
-- 7 25 367 22 389
-- -- -- 127 (127) --
- ----------------------------------------------------------------------------------------------------------------------
$94 $205 $61 $ 1,485 $(105) $ 1,380
======================================================================================================================
$(5) $ 13 $(1) $ 128 $ -- $ 128
--
(42)
(155)
- ----------------------------------------------------------------------------------------------------------------------
(69)
(20)
44
- ----------------------------------------------------------------------------------------------------------------------
$ (45)
======================================================================================================================
</TABLE>
<PAGE>
COMPANY OPERATIONS -- continued
<TABLE>
<CAPTION>
Packaging Construction
Base and and
1998 Materials Consumer Distribution
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
Customer aluminum shipments 668 141 184
Intersegment aluminum shipments 354 -- --
- ----------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 1,022 141 184
======================================================================================================================
Revenues:
Aluminum $1,055 $ 787 $681
Nonaluminum 402 605 314
Intersegment revenues-- aluminum 572 -- --
- ----------------------------------------------------------------------------------------------------------------------
Total revenues $2,029 $ 1,392 $995
======================================================================================================================
Segment operating income (loss) $ 290 $ 156 $ 39
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects -- net
- ----------------------------------------------------------------------------------------------------------------------
Corporate operating income
Interest expense
Taxes on income
Extraordinary loss
Cumulative effect of accounting change
- ----------------------------------------------------------------------------------------------------------------------
Net Income
======================================================================================================================
Pre-tax equity income (loss) included
in revenues $ (3) $ -- $ --
Depreciation and amortization 138 44 7
Assets $3,000 $ 625 $375
Current liabilities (excluding debt) 305 110 86
- ----------------------------------------------------------------------------------------------------------------------
Net operating investment $2,695 $ 515 $289
======================================================================================================================
Unincorporated joint ventures and
associated companies $1,299 $ -- $ --
Capital expenditures 228 38 10
======================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Reconciling
Transportation Restructuring Other Segments Items Consolidated
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
63 391 37 1,484 -- 1,484
-- 4 -- 358 (358) --
- -----------------------------------------------------------------------------------------------------------------------
63 395 37 1,842 (358) 1,484
=======================================================================================================================
$336 $1,434 $117 $4,410 $ -- $4,410
-- 17 47 1,385 64 1,449
-- 12 -- 584 (584) --
- -----------------------------------------------------------------------------------------------------------------------
$336 $1,463 $164 $6,379 $ (520) $5,859
=======================================================================================================================
$(19) $ 124 $ -- $ 590 $ 590
5
(140)
(144)
- ------------------------------------------------------------------------------------------------------------------------
311
(114)
(45)
(63)
(23)
- ------------------------------------------------------------------------------------------------------------------------
$ 66
========================================================================================================================
$ (1) $ -- $ (10) $ (14) $ -- $ (14)
25 26 4 244 8 252
$352 $ 282 $ 417 $ 5,051 $ 1,083 $ 6,134
53 66 34 654 275 929
- ------------------------------------------------------------------------------------------------------------------------
$299 $ 216 $ 383 $ 4,397 $ 808 $ 5,205
========================================================================================================================
$ 7 $ -- $ 172 $ 1,478 $ -- $ 1,478
50 -- 4 330 11 341
========================================================================================================================
</TABLE>
<PAGE>
COMPANY OPERATIONS -- continued
<TABLE>
<CAPTION>
Packaging Construction
Base and and
1997 Materials Consumer Distribution
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
Customer aluminum shipments 513 142 166
Intersegment aluminum shipments 684 -- --
- -----------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 1,197 142 166
=======================================================================================================================
Revenues:
Aluminum $ 923 $ 797 $614
Nonaluminum 405 602 328
Intersegment revenues-- aluminum 1,187 -- --
- -----------------------------------------------------------------------------------------------------------------------
Total revenues $ 2,515 $ 1,399 $942
=======================================================================================================================
Segment operating income $ 312 $ 141 $ 41
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects-- net
- -----------------------------------------------------------------------------------------------------------------------
Corporate operating income
Interest expense
Taxes on income
Extraordinary loss
Cumulative effect of accounting change
- -----------------------------------------------------------------------------------------------------------------------
Net Income
=======================================================================================================================
Pre-tax equity income (loss) included
in revenues $ (2) $ -- $ --
Depreciation and amortization 135 47 5
Assets $ 3,154 $ 663 $381
Current liabilities (excluding debt) 289 114 102
- -----------------------------------------------------------------------------------------------------------------------
Net operating investment $ 2,865 $ 549 $279
=======================================================================================================================
Unincorporated joint ventures and
associated companies $ 1,177 $ -- $ --
Capital expenditures 105 41 9
=======================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Reconciling
Transportation Restructuring Other Segments Items Consolidated
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
66 737 39 1,663 -- 1,663
-- 10 -- 694 (694) --
- -----------------------------------------------------------------------------------------------------------------------
66 747 39 2,357 (694) 1,663
=======================================================================================================================
$353 $2,610 $126 $5,423 $ -- $5,423
-- 72 28 1,435 42 1,477
-- 33 -- 1,220 (1,220) --
- -----------------------------------------------------------------------------------------------------------------------
$353 $2,715 $154 $8,078 $ (1,178) $6,900
=======================================================================================================================
$ 10 $ 102 $ 5 $ 611 $ 611
(12)
(131)
(75)
- -----------------------------------------------------------------------------------------------------------------------
393
(153)
(104)
--
--
- -----------------------------------------------------------------------------------------------------------------------
$ 136
=======================================================================================================================
$ 1 $ -- $ (4) $ (5) $ -- $ (5)
26 143 4 360 8 368
$331 $1,921 $442 $6,892 $ 334 $7,226
46 212 17 780 294 1,074
- -----------------------------------------------------------------------------------------------------------------------
$285 $1,709 $425 $6,112 $ 40 $6,152
=======================================================================================================================
$ 8 $ -- $196 $1,381 $ -- $1,381
40 33 30 258 14 272
=======================================================================================================================
</TABLE>
<PAGE>
COMPANY OPERATIONS -- continued
<TABLE>
<CAPTION>
Packaging Construction
Base and and
1996 Materials Consumer Distribution
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
Customer aluminum shipments 458 136 151
Intersegment aluminum shipments 577 -- --
- ----------------------------------------------------------------------------------------------------------------------
Total aluminum shipments 1,035 136 151
======================================================================================================================
Revenues:
Aluminum $ 765 $ 768 $600
Nonaluminum 373 585 332
Intersegment revenues-- aluminum 944 -- --
- ----------------------------------------------------------------------------------------------------------------------
Total revenues $ 2,082 $1,353 $932
======================================================================================================================
Segment operating income (loss) $ 242 $ 149 $ 45
Inventory accounting adjustments
Corporate amounts
Operational restructuring effects - net
- ----------------------------------------------------------------------------------------------------------------------
Corporate operating income
Interest expense
Taxes on income
Cumulative effect of accounting change
- ----------------------------------------------------------------------------------------------------------------------
Net Income
======================================================================================================================
Pre-tax equity income included
in revenues $ -- $ -- $ --
Depreciation and amortization 131 46 5
Assets $ 3,207 $ 635 $365
Current liabilities (excluding debt) 283 124 84
- ----------------------------------------------------------------------------------------------------------------------
Net operating investment $ 2,924 $ 511 $281
======================================================================================================================
Unincorporated joint ventures and
associated companies $ 1,187 $ -- $ --
Capital expenditures 93 59 6
======================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Total Reconciling
Transportation Restructuring Other Segments Items Consolidated
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
58 813 37 1,653 -- 1,653
-- 11 -- 588 (588) --
- ----------------------------------------------------------------------------------------------------------------------
58 824 37 2,241 (588) 1,653
======================================================================================================================
$329 $2,802 $149 $5,413 $ -- $5,413
-- 243 41 1,574 29 1,603
-- 39 -- 983 (983) --
- ----------------------------------------------------------------------------------------------------------------------
$329 $3,084 $190 $7,970 $ (954) $7,016
======================================================================================================================
$ 17 $ (38) $ 13 $ 428 $ 428
63
(141)
(37)
- ----------------------------------------------------------------------------------------------------------------------
313
(160)
(49)
(15)
- ----------------------------------------------------------------------------------------------------------------------
$ 89
======================================================================================================================
$ 3 $ -- $ 18 $ 21 $ -- $ 21
23 143 9 357 8 365
$304 $2,149 $547 $7,207 $ 309 $ 7,516
38 256 12 797 223 1,020
- ----------------------------------------------------------------------------------------------------------------------
$266 $1,893 $535 $6,410 $ 86 $ 6,496
======================================================================================================================
$ 8 $ -- $142 $1,337 $ -- $ 1,337
47 167 28 400 32 432
======================================================================================================================
</TABLE>
<PAGE>
COMPANY OPERATIONS -- continued
<TABLE>
<CAPTION>
RECONCILING ITEMS
Reconciling items consist of the following:
1998 1997 1996
----------------------------------------
<S> <C>
Assets:
Corporate assets $1,106 $917 $ 847
Construction in progress 320 155 207
Inventory accounting adjustments (248) (547) (530)
Internal receivables included in the assets of the
global business units (95) (191) (215)
-----------------------------------------
$1,083 $334 $309
=========================================
Current liabilities:
Corporate liabilities $ 287 $398 $308
Payables to unincorporated joint ventures and
associated companies 75 81 97
Internal liabilities included in the current liabilities of the
global business units (87) (185) (182)
-----------------------------------------
$ 275 $294 $223
=========================================
The reconciling amounts for nonaluminum revenues, depreciation and amortization and capital expenditures relate
to corporate activities.
</TABLE>
