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Street raps Reynolds Metals
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January 20, 1999: 2:24 p.m. ET
Metals firm falls short of Street estimates for 4Q, shipments down
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NEW YORK (CNNfn) - Reynolds Metals Co. failed to meet Wall Street's expectations in its fourth quarter earnings report Wednesday.
The Richmond, Va.-based Reynolds Metals Co. (RLM) said its net income for the fourth quarter of 1998 was $50 million or 76 cents per common share. This fell below analysts' estimates of 84 cents per share, as compiled by First Call.
In the fourth quarter of 1997, Reynolds' net income from operations was $80 million, or $1.09 per share.
Reynolds said results from the fourth quarter of 1998 include an after-tax restructuring charge of $95 million, or $1.47 per share, for employee costs related to the sale of a can stock complex in Alabama. The 1997 fourth-quarter figures include a restructuring charge of $97 million or $1.32 per share, primarily related to divestitures.
After the charges, Reynolds reported a net loss of $45 million or 71 cents per share for the 1998 fourth quarter and a net loss of $17 million or 23 cents per common share for the 1997 fourth quarter.
Revenue for the 1998 fourth quarter totaled $1.38 billion, compared to $1.77 billion in the fourth quarter of 1997. Aluminum shipments totaled 378,000 metric tons, compared to 418,000 metric tons in the 1997 fourth quarter.
For the year 1998, net income from operations was $242 million, or $3.47 per share, compared with net income from operations in 1997 of $214 million or $2.91 per share.
"Lower primary aluminum pricing had a significant negative impact on Reynolds fourth-quarter results," said Jeremiah J. Sheehan, chairman and chief executive officer in a statement.
Reynolds Metals was down 1-1/8 at 52-7/8 in early afternoon trading. 
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Reynolds Metals Co.
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