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EXHIBIT 11
ITT INDUSTRIES, INC. AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE
(IN MILLIONS, EXCEPT PER SHARE)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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1996 1995 1996 1995
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PRIMARY BASIS --
Net income .................................................................. $ 68 $ 612 $ 108 $ 840
ESOP preferred dividends -- net of tax ...................................... -- (9) -- (17)
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Net income applicable to primary earnings per share ......................... $ 68 $ 603 $ 108 $ 823
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Average common shares outstanding ........................................... 118 106 118 106
Common shares issuable in respect to common stock equivalents ............... 3 1 3 1
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Average common equivalent shares ............................................ 121 107 121 107
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Earnings Per Share
Continuing operations ....................................................... $ .56 $ .35 $ .89 $ .69
Discontinued operations ..................................................... -- 5.26 -- 6.97
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Net income .................................................................. $ .56 $5.61 $ .89 $7.66
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FULL DILUTED BASIS --
Net income applicable to primary earnings per share ......................... $ 68 $ 603 $ 108 $ 823
ESOP preferred dividends -- net of tax ...................................... -- 9 -- 17
If converted ESOP expense adjustment -- net of tax benefit .................. -- (6) -- (10)
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Net income applicable to fully diluted earnings per share ................... $ 68 $ 606 $ 108 $ 830
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Average common equivalent shares ............................................ 121 107 121 107
Additional common shares issuable assuming full dilution .................... -- 10 -- 10
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Average common equivalent shares assuming full dilution ..................... 121 117 121 117
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Earnings Per Share
Continuing operations ....................................................... $ .56 $ .35 $ .89 $ .69
Discontinued operations ..................................................... -- 4.82 -- 6.39
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Net income .................................................................. $ .56 $5.17 $ .89 $7.08
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In 1995, the Series N convertible preferred stock was considered a common
stock equivalent. With respect to options, it is assumed that the proceeds to be
received upon exercise are used to acquire common stock of the Company. The
calculation impact of dilutive securities is determined quarterly based on the
forecast of annual earnings.