EXHIBIT 11
TENNECO INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE OF COMMON STOCK
(UNAUDITED)
(MILLIONS EXCEPT SHARE AMOUNTS)
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THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------- -------------------------
1996 1995 1996 1995
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COMPUTATION FOR
STATEMENTS OF INCOME
Primary Earnings Per
Share (average shares
outstanding):
Income from
continuing
operations.......... $ 161 $ 129 $ 317 $ 257
Income from
discontinued
operations, net of
income tax.......... -- 56 339 81
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Net income........... 161 185 656 338
Preferred stock
dividends........... 2 3 5 6
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Net income to common
stock............... $ 159 $ 182 $ 651 $ 332
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Average shares of
common stock
outstanding(a)...... 170,264,386 173,699,875 170,351,740 175,829,883
============= ============= ============ ============
Earnings per average
share of common
stock:
Continuing
operations........ $ .93 $ .72 $ 1.83 $ 1.43
Discontinued
operations........ -- .33 1.99 .46
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$ .93 $ 1.05 $ 3.82 $ 1.89
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ADDITIONAL
COMPUTATIONS(B)
Net income to common
stock, per above..... $ 159 $ 182 $ 651 $ 332
============= ============= ============ ============
Primary Earnings Per
Share (including
common stock
equivalents):
Average shares of
common stock
outstanding(a)...... 170,264,386 173,699,875 170,351,740 175,829,883
Incremental common
shares applicable to
common stock options
based on the common
stock daily average
market price during
the period.......... 642,997 59,941 589,005 54,924
Incremental common
shares applicable to
performance units
based upon the
attainment of
specified goals..... 88,125 27,625 88,125 27,625
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Average common
shares, as adjusted. 170,995,508 173,787,441 171,028,870 175,912,432
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Earnings per average
share of common
stock (including
common stock
equivalents):
Continuing
operations........ $ .93 $ .72 $ 1.83 $ 1.43
Discontinued
operations........ -- .33 1.98 .46
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$ .93 $ 1.05 $ 3.81 $ 1.89
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Fully Diluted Earnings
Per Share:
Average shares of
common stock
outstanding(a)...... 170,264,386 173,699,875 170,351,740 175,829,883
Incremental common
shares applicable to
common stock options
based on the more
dilutive of the
common stock ending
or average market
price during the
period.............. 642,997 59,941 708,884 62,190
Average common shares
issuable assuming
conversion of
Tenneco Inc. 10%
loan stock.......... -- 38,945 -- 39,164
Incremental common
shares applicable to
performance units
based upon the
attainment of
specified goals..... 88,125 27,625 88,125 27,625
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Average common shares
assuming full
dilution............ 170,995,508 173,826,386 171,148,749 175,958,862
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Fully diluted
earnings per average
share, assuming
conversion of all
applicable
securities:
Continuing
operations........ $ .93 $ .72 $ 1.82 $ 1.43
Discontinued
operations........ -- .33 1.98 .46
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$ .93 $ 1.05 $ 3.80 $ 1.89
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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. For the three months and six months ended June 30, 1996
and 1995, the SECT utilized 2,517,180, 468,298, 3,234,436 and
1,206,097 shares, respectively.
(b) 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%.