PHELPS DODGE CORPORATION AND SUBSIDIARIES
Exhibit 11
COMPUTATION OF PER SHARE EARNINGS
(Unaudited; dollars in millions except per share data)
Six Months Ended
Second Quarter June 30,
-------------- --------
2002 2001 2002 2001
---- ---- ---- ----
Loss before cumulative effect of accounting change ..... $ (36.4) (110.5) (41.2) (94.3)
Cumulative effect of accounting change (1) ............. -- -- (22.9) (2.0)
-------- -------- -------- --------
Net loss ............................................... $ (36.4) (110.5) (64.1) (96.3)
Preferred stock dividends .............................. (2.4) -- (2.4) --
-------- -------- -------- --------
Loss applicable to common shares ....................... $ (38.8) (110.5) (66.5) (96.3)
======== ======== ======== ========
Basic:
Average number of common shares outstanding ....... 80.6 78.5 79.6 78.5
Diluted:
Average number of common shares outstanding ....... 80.6 78.5 79.6 78.5
Common stock equivalents - stock options .......... 0.1 -- 0.1 --
Common stock equivalents - restricted stock ....... 0.2 0.2 0.2 0.2
Conversion of mandatory convertible preferred stock 1.1 -- 0.5 --
-------- -------- -------- --------
Diluted average number of common shares
outstanding ................................... 82.0 78.7 80.4 78.7
Basic loss per share:
Loss before cumulative effect of accounting change $ (0.48) (1.41) (0.55) (1.20)
Cumulative effect of accounting change (1) .... -- -- (0.29) (0.03)
-------- -------- -------- --------
Basic loss per share .............................. $ (0.48) (1.41) (0.84) (1.23)
Diluted loss per share:
Loss before cumulative effect of accounting change $ (0.44) (1.40) (0.51) (1.20)
Cumulative effect of accounting change (1) .... -- -- (0.29) (0.03)
-------- -------- -------- --------
Diluted loss per share (2) ........................ $ (0.44) (1.40) (0.80) (1.23)
(1) The six months ended June 30, 2002, included adoption of SFAS No. 142,
"Goodwill and Other Intangible Assets," and the six months ended June
30, 2001, included adoption of SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities," (as amended by SFAS No. 137) and
SFAS No. 138, "Accounting for Certain Derivative Instruments and
Certain Hedging Activities."
(2) Diluted loss per share was anti-dilutive for the 2002 and 2001 second
quarters and for the six months ended June 30, 2002.