DRESSER INDUSTRIES, INC. AND CONSOLIDATED SUBSIDIARIES
COMBINED WITH UNCONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(millions of dollars except for ratio)
Year Ended October 31,
--------------------------------
1995 1994 1993 1992 1991
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Earnings
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Consolidated Pretax
Income from Continuing
Operations 342.2 619.4 276.7 187.4 265.4
Share of Pretax Income of
less than 50% Owned
Affiliates:
Ingersoll-Dresser Pump
Company (13.2) (8.8) (17.1) (2.2)
Western Atlas
International, Inc. (39.2) (35.2) (32.7)
Share of Net Earnings of
Other 50% and Less Owned
Affiliates (2.9) (14.6) (19.8) (14.7) (12.8)
Share of Pretax Income of
Other 50%
Owned Affiliates 10.1 7.1 9.1 10.8 7.3
Dividends Received from
less than 50%
Owned Affiliates 2.7 7.9 3.1 4.1 2.1
Fixed Charges (see below) 64.1 61.7 56.5 76.7 74.5
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Total Earnings 403.0 672.7 269.3 226.9 303.8
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Fixed Charges
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Interest Expense 47.4 49.3 44.5 47.4 56.9
Debt Expense and
Amortization 0.3 0.3 0.3 0.1 0.1
Premium on Redemption of
Debentures 9.8
Interest Factor of Rental
Expense 16.4 12.1 11.7 15.9 14.5
Share of Fixed Charges of 50%
Owned Affiliates Interest Expense 0.8 0.8
Interest Factor of Rental Expense 2.7 2.2
Total Fixed Charges 64.1 61.7 56.5 76.7 74.5
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Ratio of Earnings to Fixed
Charges 6.29 10.90 4.77 2.96 4.08
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Notes:
1. The Company owned 50% of Dresser-Rand Company in 1991 and most of
1992. Effective October 1, 1992, the Company increased its ownership
to 51%. Dresser-Rand's pre-tax income is included in Consolidated
Pre-Tax Income from Continuing Operations on the basis of 50% in 1991
and 1992 and 100% in 1993 and thereafter.
2. The Company owned 49% of Ingersoll-Dresser Pump Company from its
inception as of October 1, 1992.
3. The Company owned approximately 30% of Western Atlas International,
Inc. in 1991, 1992 and 1993. The Company sold its interest in Western
Atlas International, Inc. in 1994 and had a pre-tax gain of $275.7
million. Excluding the gain, the 1994 ratio is 6.43.
4. Share of fixed charges of 50% owned affiliates relates to Dresser-Rand
in 1991 and 1992 and is not significant in all other periods.
5. The interest factor of rental expense is estimated at one-third of
rental expense on long-term leases which Management believes to be a
reasonable approximation.