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Exhibit 11
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE
AND COMMON EQUIVALENT SHARE
(THOUSANDS OF DOLLARS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended
March 31,
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1996 1995
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Primary Earnings (Loss) Per Share:
(1) Weighted average shares of
common stock outstanding . . . . . . . . . . . . . . . . . . . . . . . 248,466,091 247,196,758
(2) Effect of issuance of shares from assumed
exercise of stock options
(treasury stock method) . . . . . . . . . . . . . . . . . . . . . . . . 21,668 (40,290)
------------ ------------
(3) Weighted average shares . . . . . . . . . . . . . . . . . . . . . . . . . . 248,487,759 247,156,468
============ ============
(4) Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (16,740) $ 114,456
(5) Primary earnings (loss) per share
(line 4 divided by line 3) . . . . . . . . . . . . . . . . . . . . . . $ (.07) $ .46
Fully Diluted Earnings (Loss) Per Share:
(6) Weighted average shares per
computation (line 3) . . . . . . . . . . . . . . . . . . . . . . . . . 248,487,759 247,156,468
(7) Shares applicable to options
included (line 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . (21,668) 40,290
(8) Dilutive effect of stock options based on the
average price for the quarter or quarter-end
price, whichever is higher, of $22.75 and
$19.375 for 1996 and 1995, respectively
(treasury stock method) . . . . . . . . . . . . . . . . . . . . . . . . 21,668 (40,290)
------------ ------------
(9) Weighted average shares . . . . . . . . . . . . . . . . . . . . . . . . . . 248,487,759 247,156,468
============ ============
(10) Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (16,740) $ 114,456
(11) Fully diluted earnings (loss) per
share (line 10 divided by line 9) . . . . . . . . . . . . . . . . . . $ (.07) $ .46
Notes:
These calculations are submitted in accordance with Regulation S-K item
601(b)(11) although it is not required for financial presentation disclosure
per footnote 2 to paragraph 14 of Accounting Principles Board (APB) Opinion No.
15 because it does not meet the 3% dilutive test.
The calculations for the three months ended March 31, 1995 are submitted in
accordance with Regulation S-K item 601(b)(11) although they are contrary to
paragraphs 30 and 40 of APB No. 15 because they produce anti-dilutive results.