Case: Dresser Industries
Dresser Industries provides products and services to oil and natural gas exploration, production, transmission and processing companies. A recent income statement is reproduced below. Dollar amounts are in millions.
|
Sales |
$2,697.00 |
|
Service revenues |
1,933.90 |
|
Share of earnings of unconsolidated affi liates |
92.4 |
|
Total revenues |
4,723.30 |
|
Cost of sales |
1,722.70 |
|
Cost of services |
1,799.90 |
|
Total costs of sales and services |
3,522.60 |
|
Gross earnings |
1,200.70 |
|
Selling, engineering, administrative and general expenses |
919.8 |
|
Special charges |
70 |
|
Other income (deductions) |
|
|
Interest expense |
47.4 |
|
Interest earned |
19.1 |
|
Other, net |
4.8 |
|
Earnings before income taxes and other items below |
187.4 |
|
Income taxes |
79.4 |
|
Minority interest |
10.3 |
|
Earnings from continuing operations |
97.7 |
|
Discontinued operations |
35.3 |
|
Earnings before extraordinary items |
62.4 |
|
Extraordinary items |
6.3 |
|
Net earnings |
$56.10 |
Instructions
Assume that 177,636,000 shares of stock were issued and outstanding. Prepare the per share portion of the income statement. Remember to begin with “Earnings from continuing operations.”