EX-11 9 p72630exv11.htm EXHIBIT 11 exv11
 

PHELPS DODGE CORPORATION AND SUBSIDIARIES
Exhibit 11
COMPUTATION OF PER SHARE EARNINGS
(Unaudited; $ in millions except per share amounts)
                                   
        Six Months Ended
    Second Quarter   June 30,
         
    2006   2005   2006   2005
                 
Income from continuing operations
   $ 471.4       675.1       822.1       1,052.5  
Income (loss) from discontinued operations
     0.3       7.2       (16.6 )     16.5  
                         
Net income
   $ 471.7       682.3       805.5       1,069.0  
Preferred stock dividends
     —       (3.4 )     —       (6.8 )
                         
Net income applicable to common shares
   $ 471.7       678.9       805.5       1,062.2  
                         
 
Basic:
                                
 
Weighted average number of common shares outstanding*
     202.4       192.4       202.2       191.9  
 
Diluted:
                                
 
Weighted average number of common shares outstanding*
     202.4       192.4       202.2       191.9  
 
Weighted average common stock equivalents — stock options*
     0.2       0.7       0.3       0.9  
 
Weighted average common stock equivalents — restricted stock*
     0.9       0.7       0.8       0.8  
 
Weighted average conversion of mandatory convertible preferred stock*
     —       8.3       —       8.3  
                         
 
Diluted weighted average number of common shares outstanding*
     203.5       202.1       203.3       201.9  
 
Basic earnings per common share:
                                
 
Income from continuing operations
   $ 2.33       3.49       4.06       5.45  
 
Income (loss) from discontinued operations
     —       0.04       (0.08 )     0.08  
                         
 
Basic earnings per common share
   $ 2.33       3.53       3.98       5.53  
                         
 
Diluted earnings per common share:
                                
 
Income from continuing operations
   $ 2.32       3.34       4.04       5.21  
 
Income (loss) from discontinued operations
     —       0.04       (0.08 )     0.08  
                         
 
Diluted earnings per common share
   $ 2.32       3.38       3.96       5.29  
                         
 
* Weighted average shares outstanding and earnings per common share for the quarter and six months ended June 30, 2005, have been adjusted to reflect the March 10, 2006, stock split. (Refer to Note 15, Shareholders’ Equity, to our unaudited June 30, 2006, Consolidated Financial Information for further discussion).