EXHIBIT 11
TENNECO INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSS) PER SHARE OF COMMON STOCK
(UNAUDITED)
(MILLIONS EXCEPT SHARE AMOUNTS)
----------------------------------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------- -------------------------
1995 1994 1995 1994
------------ ------------ ------------ ------------
COMPUTATION FOR STATE-
MENTS OF INCOME
Primary Earnings Per
Share (average shares
outstanding):
Income from continuing
operations........... $ 185 $ 161 $ 338 $ 282
Loss from discontinued
operations, net of
income tax........... -- (14) -- (13)
------------ ------------ ------------ ------------
Income before extraor-
dinary loss.......... 185 147 338 269
Extraordinary loss,
net of income tax.... -- (5) -- (5)
------------ ------------ ------------ ------------
Income before cumula-
tive effect of change
in accounting princi-
ple.................. 185 142 338 264
Cumulative effect of
change in accounting
principle, net of in-
come tax............. -- -- -- (39)
------------ ------------ ------------ ------------
Net income............ 185 142 338 225
Preferred stock divi-
dends................ 3 4 6 7
------------ ------------ ------------ ------------
Net income to common
stock................ $ 182 $ 138 $ 332 $ 218
============ ============ ============ ============
Average shares of com-
mon stock
outstanding(a),(b)... 173,699,875 179,850,934 175,829,883 179,287,726
============ ============ ============ ============
Earnings (loss) per
average share of com-
mon stock:
Continuing opera-
tions.............. $ 1.05 $ .88 $ 1.89 $ 1.54
Discontinued opera-
tions.............. -- (.08) -- (.07)
Extraordinary loss.. -- (.03) -- (.03)
Cumulative effect of
change in account-
ing principle...... -- -- -- (.22)
------------ ------------ ------------ ------------
$ 1.05 $ .77 $ 1.89 $ 1.22
============ ============ ============ ============
ADDITIONAL COMPUTATIONS
(C)
Net income to common
stock, per above....... $ 182 $ 138 $ 332 $ 218
============ ============ ============ ============
Primary Earnings Per
Share (including com-
mon stock equiva-
lents):
Average shares of com-
mon stock
outstanding(a),(b)... 173,699,875 179,850,934 175,829,883 179,287,726
Incremental common
shares applicable to
common stock options
based on the common
stock daily average
market price during
the period........... 59,941 79,004 54,924 99,042
Incremental common
shares applicable to
performance units
based upon the at-
tainment of specified
goals................ 27,625 -- 27,625 --
------------ ------------ ------------ ------------
Average common shares,
as adjusted.......... 173,787,441 179,929,938 175,912,432 179,386,768
============ ============ ============ ============
Earnings (loss) per
average share of com-
mon stock (including
common stock equiva-
lents):
Continuing opera-
tions.............. $ 1.05 $ .88 $ 1.89 $ 1.54
Discontinued opera-
tions.............. -- (.08) -- (.07)
Extraordinary loss.. -- (.03) -- (.03)
Cumulative effect of
change in account-
ing principle...... -- -- -- (.22)
------------ ------------ ------------ ------------
$ 1.05 $ .77 $ 1.89 $ 1.22
============ ============ ============ ============
Fully Diluted Earnings
Per Share:
Average shares of com-
mon stock
outstanding(a),(b)... 173,699,875 179,850,934 175,829,883 179,287,726
Incremental common
shares applicable to
common stock options
based on the more
dilutive of the com-
mon stock ending or
average market price
during the period.... 59,941 79,004 62,190 99,042
Average common shares
issuable assuming
conversion of Tenneco
Inc. 10% loan stock.. 38,945 41,903 39,164 41,903
Incremental common
shares applicable to
performance units
based upon the at-
tainment of specified
goals................ 27,625 -- 27,625 --
------------ ------------ ------------ ------------
Average common shares
assuming full dilu-
tion................. 173,826,386 179,971,841 175,958,862 179,428,671
============ ============ ============ ============
Fully diluted earnings
(loss) per average
share, assuming con-
version of all appli-
cable securities:
Continuing opera-
tions.............. $ 1.05 $ .88 $ 1.89 $ 1.54
Discontinued opera-
tions.............. -- (.08) -- (.07)
Extraordinary loss.. -- (.03) -- (.03)
Cumulative effect of
change in account-
ing principle...... -- -- -- (.22)
------------ ------------ ------------ ------------
$ 1.05 $ .77 $ 1.89 $ 1.22
============ ============ ============ ============
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NOTES: (a) In 1992, 12,000,000 shares of common stock were issued to the Stock
Employee Compensation Trust ("SECT"). Shares of common stock issued
to a related trust are not considered to be outstanding in the
computation of average shares of common stock until the shares are
utilized to fund the obligations for which the trust was
established. At June 30, 1995, the SECT had utilized 6,150,243 of
these shares.
(b) Prior to conversion in December 1994, Series A preferred stock was
converted into common stock under the Contingent Share method. The
above computation includes 8,935,175 shares of Series A preferred
stock which were converted into 17,342,763 shares of common stock. In
December 1994, all of the outstanding shares of Series A preferred
stock were converted into Tenneco Inc. common stock. The inclusion of
Series A preferred stock in the computation of earnings per share was
antidilutive for the first half of 1994.
(c) These calculations are submitted in accordance with Securities and
Exchange Commission requirements although not required by Accounting
Principles Board Opinion No. 15 because they result in dilution of
less than 3%.