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.”