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PHELPS DODGE CORPORATION AND SUBSIDIARIES
 COMPUTATION OF PER SHARE EARNINGS
 For the years endedDecember 31,2005
    
    
    2004
    
    
    2003Income (loss) from continuing operations before extraordinary
item and cumulative effective of accounting changes
    
    $
    1,583.9
    
    
    
    1,023.6
    
    
    
    (21.1
    )Income (loss) from discontinued operations
    
    
    (17.4
    )
    
    
    22.7
    
    
    
    39.2Extraordinary item
    
    
    
    
    
    
    
    
    
    
    68.3Cumulative effect of accounting changes (1)
    
    
    (10.1
    )
    
    
    
    
    
    
    8.4Net income
    
    $
    1,556.4
    
    
    
    1,046.3
    
    
    
    94.8Preferred stock dividends
    
    
    (6.8
    )
    
    
    (13.5
    )
    
    
    (13.5
    )Net income applicable to common shares
    
    $
    1,549.6
    
    
    
    1,032.8
    
    
    
    81.3Basic:Weighted average number of common shares outstanding
    
    
    97.9
    
    
    
    93.4
    
    
    
    88.8Diluted:Weighted average number of common shares outstanding
    
    
    97.9
    
    
    
    93.4
    
    
    
    88.8Weighted average common stock equivalents  stock options
    
    
    0.4
    
    
    
    0.9
    
    
    
    0.4Weighted average common stock equivalents  restricted stock
    
    
    0.4
    
    
    
    0.4
    
    
    
    0.2Weighted average conversion of mandatory convertible preferred stock
    
    
    2.6
    
    
    
    4.2
    
    
    
    4.7Diluted weighted average number of common shares outstanding (2)
    
    
    101.3
    
    
    
    98.9
    
    
    
    94.1Basic earnings per common share:Income (loss) from continuing operations
    
    $
    16.12
    
    
    
    10.82
    
    
    
    (0.39
    )Income (loss) from discontinued operations
    
    
    (0.18
    )
    
    
    0.24
    
    
    
    0.45Extraordinary item
    
    
    
    
    
    
    
    
    
    
    0.77Cumulative effect of accounting changes (1)
    
    
    (0.10
    )
    
    
    
    
    
    
    0.09Basic earnings per common share
    
    $
    15.84
    
    
    
    11.06
    
    
    
    0.92Diluted earnings per common share:Income (loss) from continuing operations
    
    $
    15.64
    
    
    
    10.35
    
    
    
    (0.39
    )Income (loss) from discontinued operations
    
    
    (0.17
    )
    
    
    0.23
    
    
    
    0.45Extraordinary item
    
    
    
    
    
    
    
    
    
    
    0.77Cumulative effect of accounting changes (1)
    
    
    (0.10
    )
    
    
    
    
    
    
    0.09Diluted earnings per common share (2)
    
    $
    15.37
    
    
    
    10.58
    
    
    
    0.92
 
 (1)
    
    The year ended December 31, 2005, included adoption of FIN 47, Accounting for Conditional Asset Retirement
Obligations  an Interpretation of FASB Statement No. 143; the year ended December 31, 2003, included adoption
of SFAS No. 143, Accounting for Asset Retirement Obligations.(2)
    
    For the year ended December 31, 2003, diluted earnings per common share from continuing operations was
anti-dilutive; therefore, diluted earnings per common share was based on basic average number of shares outstanding.