SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1996
Commission File No. 1-4582
RALSTON PURINA COMPANY
-----------------------------------------------------------
(Exact name of registrant as specified in its charter)
MISSOURI 43-0470580
------------------------------------------------------------
(State of Incorporation) (I.R.S. Employer
Identification No.)
CHECKERBOARD SQUARE, ST. LOUIS MISSOURI
63164
------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(314) 982-1000
------------------------------------------------------------
(Registrant's telephone number, including area code)
Registrant (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months, and (2) has been subject to such filing requirements for the
past 90 days.
YES: X NO:
Number of shares of Ralston Purina common stock, $.10 par value, outstanding as
of the close of business on May 7, 1996:
105,990,553
PART I - FINANCIAL INFORMATION
RALSTON PURINA COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL INFORMATION
----------------------------------------------------------------
Operating Results
Net earnings for the six months ended March 31, 1996 were $187.6 million,
compared to $152.5 million for the same period in the prior year. During the
six months ended March 31, 1995, the Company recorded provisions for battery
products restructuring of $28.0 million, after taxes.
Effective July 22, 1995, the Company sold its Continental Baking Company (CBC)
subsidiary. On May 15, 1995, the Company exchanged each outstanding share of
its Ralston-Continental Baking Group Common Stock (CBG Stock) for shares of its
Ralston-Ralston Purina Group Common Stock, now designated as Ralston Purina
Common Stock (RAL Stock). Pro forma earnings, assuming that each of these
events had occurred on October 1, 1994, and before restructuring charges,
increased $1.3 million in the current six months to $187.6 million, compared to
$186.3 million for the same period in 1995. The increase resulted from slightly
higher operating profit and a lower income tax rate, substantially offset by
currency translation losses related to Mexican and Venezuelan operations and
higher interest expense. Earnings per share for the six months ended March 31,
1996 were $1.77 and $1.67 on a primary and fully-diluted basis, respectively,
compared to pro forma earnings per share before restructuring charges of $1.75
and $1.65 in the prior year.
For the quarter ended March 31, 1996, net earnings were $59.1 million compared
to $51.4 million for the same quarter in 1995. Pro forma results in the second
quarter of 1995, exclusive of restructuring charges, were $63.9 million compared
to $59.1 million in the current quarter. The decrease of $4.8 million reflected
flat operating earnings, higher interest expense and lower returns on other
investments, partially offset by a lower tax rate. Primary and fully-diluted
earnings per share on this basis were $.55 and $.52, respectively, in the
current quarter compared to $.59 and $.56 in the prior year.
Business Segments
Sales for the Pet Products segment for the quarter and six months increased 18%
on the inclusion of sales from Golden Cat, acquired in April 1995, higher pet
food volume and higher second quarter domestic prices.
Operating profit for the quarter and six months increased slightly as the
benefit of higher sales was nearly offset by higher advertising and promotion
support for core brands and new products, and higher pet food ingredient and
packaging costs.
Sales for the Battery Products segment were flat in the quarter and six months
over the same periods of the prior year as strong alkaline volume growth in the
Asia Pacific region was offset by sales declines in Pan America caused by poor
economic conditions, particularly in Mexico and Brazil. Domestically, sales
increased on higher alkaline volumes, primarily in the second quarter, and
increased prices, partially offset by lower rechargeable sales to the OEM
(original equipment manufacturers) market segment.
Operating profit for the quarter, excluding restructuring charges, decreased on
lower rechargeable sales to the OEM market segment and higher systems
development costs, partially offset by strong performances in Asia and in other
Battery Products operations in the United States. For the six months, results
were down slightly as increased domestic, Asia Pacific and European results were
offset by declines in Pan America, lower rechargeable sales and higher systems
costs. Margin percentages in Europe and Pan Am improved reflecting the 1995
plant closings.
During the quarter and six months ended March 31, 1995, the Company recorded
charges of $11.7 million, after taxes, and $28.0 million, after taxes,
respectively, or $.12 and $.10 per pro forma primary and fully-diluted share for
the quarter and $.28 and $.25 per pro forma share, respectively, for the six
months, in connection with the restructuring of its worldwide carbon zinc
battery production capacity.
On a pre-tax basis, charges for restructuring for the six months were $35.0
million and consisted of termination benefits of $23.7 million, other cash exit
costs of $3.3 million and non-cash charges of $8.0 million, primarily related to
anticipated losses on disposal of land, buildings and machinery and equipment.
During the current six months, one plant was closed and 692 employees were
severed in connection with the restructuring plan. Other activities related to
the restructuring plan during the six month period were as follows:
(millions)
Reserve balance at September 30, 1995 $ 43.9
Cash exit costs incurred during the six months (12.0)
Increase due to translation .1
Reserve balance at March 31, 1996 $ 32.0
Sales of the soy protein products business increased 9% in the six months and 7%
in the quarter on strong volume in food protein products. Operating profit
increased in the six months but declined in the quarter on higher volumes offset
by increased business development costs.
Sales for international agricultural products increased 21% in the six months
and 27% in the quarter on higher volumes, primarily due to acquisitions, and
higher prices in most world areas related to increased raw material prices.
Operating profit improvements reflected the acquisitions and purchases of
minority interests.
Results of Operations
Cost of products sold as a percentage of sales, exclusive of CBC operations in
the prior year, for the six months increased from 57.8% in 1995 to 58.5% in the
current year. Improvements in battery and soy protein products were more than
offset by increased percentages in pet and agricultural products. The battery
products' plant closings in 1995 contributed to margin improvements. Pet
products were unfavorably impacted by higher ingredient and packaging costs.
Cost percentages in the second quarter were 60.2% and 58.8% of sales in 1996 and
1995, respectively, reflecting increased percentages in pet and agricultural
products and sales increases in the lower margin Agricultural Products segment.
Comparisons in this paragraph exclude the results of the sold CBC operations in
the prior year costs. Selling, general and administrative expenses were 17.1%
of sales for the 1996 and 1995 six month periods. Advertising and promotion
expense for those periods was 11.1% and 10.5% of sales, respectively, on
increases in pet products. Other income/expense, net was unfavorable by $11.9
million for the six months on higher foreign currency translation and exchange
losses, primarily in Mexico and Venezuela, and a lower return on other
investments.
Income taxes include federal, state and foreign taxes and were 38% of earnings
before income taxes for the six months ended March 31, 1996, compared to 43.7%
in the prior year. Exclusive of the impact of restructuring provisions, the
prior year tax rate was 41%. Income taxes in the current year are lower by
three percentage points due to the elimination or moderation of operating losses
in certain foreign jurisdictions where valuation allowances had been established
for tax benefits on such losses and due to the realization of certain previously
unrecognized net operating loss carryforwards. The income tax percentage in the
prior year was also influenced by certain restructuring provisions which did not
result in tax benefits due to foreign tax loss situations.
Financial Condition
The Company's primary source of liquidity is cash flow generated from
operations. For the six months ended March 31, 1996, cash flow from operations
was $283.3 million compared to $260.2 million in the six months ended March 31,
1995. The increase in cash flow in the current year is due to higher cash
earnings and changes in working capital. Working capital was $66.9 million at
March 31, 1996 compared to $21.8 million at September 30, 1995. Cash and cash
equivalents at March 31, 1996 were $61.6 million compared to $44.3 million at
September 30, 1995.
On October 2, 1995, the Company issued $175 million of 7-3/4% fixed rate long-
term debt. On March 28, 1996, the Company filed a shelf registration statement
for $400 million principal amount of debt securities.
On March 29, 1996, the Company announced its intention to separate its
international agricultural animal feeds business in a tax-free spin-off to
shareholders. Completion of the spin-off may take nine to 12 months and is
contingent upon a favorable tax ruling from the Internal Revenue Service and
approval by the Ralston Purina Board of Directors.
As of May 3, 1996, approximately 1,584,200 shares remained under the Board of
Directors' authorization for the purchase of up to 3 million shares of RAL
Stock.
PART II - OTHER INFORMATION
There is no information required to be reported under any items except those
indicated below.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits filed with this Report:
(11) Statement, re: Computation of Per Share Earnings.
(27) Financial Data Schedule
(b) Reports on Form 8-K
The Registrant filed a Report on Form 8-K on April 1, 1996, to
file its press release dated March 29, 1996, disclosing its
intention to separate its international agricultural animal
feeds business in a tax-free spin-off to shareholders
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RALSTON PURINA COMPANY
----------------------
Registrant
By: JAMES R. ELSESSER
James R. Elsesser
Vice President and Chief
Financial Officer
Date: May 8, 1996
EXHIBIT INDEX
- -------------
Exhibits
- --------
EX-11 Computation of Earnings Per Share
EX-27 Financial data schedule for 1st Quarter 1996
(provided electronically)
RALSTON PURINA COMPANY
Exhibit 11
RALSTON PURINA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in millions except per share data)
Quarter Ended Six Months
March 31, Ended March 31,
1996 1995 1996 1995
---- ---- ---- ----
<TABLE>
<S> <C> <C> <C> <C>
Net Sales $ 1,441.6 $ 1,752.1 $ 3,096.5 $ 3,743.9
--------- --------- --------- ---------
Costs and Expenses
Cost of products sold 867.5 995.0 1,812.1 2,105.3
Selling, general and administrative 269.9 460.6 529.4 915.6
Advertising and promotion 155.2 140.4 344.1 319.2
Interest expense 49.5 46.8 99.2 95.7
Provision for restructuring 12.1 35.0
Other (income)/expense, net 6.4 2.5 14.4 2.1
--------- --------- --------- --------
1,348.5 1,657.4 2,799.2 3,472.9
--------- --------- --------- --------
Earnings before Income Taxes and
Equity Earnings 93.1 94.7 297.3 271.0
Income Taxes (35.4) (43.3) (113.0) (118.5)
--------- --------- --------- --------
Earnings before Equity Earnings 57.7 51.4 184.3 152.5
Equity Earnings, Net of Taxes 1.4 3.3
--------- --------- --------- --------
Net Earnings 59.1 51.4 187.6 152.5
Preferred Stock Dividend, Net of Taxes (3.6) (4.8) (7.2) (9.6)
--------- --------- --------- --------
Earnings Available to Common Shareholders $ 55.5 $ 46.6 $ 180.4 $ 142.9
========= ========= ========= ========
Cash Dividends Declared per RAL Common
Share $ 0.60 $ 0.60 $ 0.60 $ 0.60
========= ========= ========= ========
Earnings Per Share (pro forma in prior
year assuming one class of common stock):
Primary $0.55 $0.46 $1.77 $1.40
Fully Diluted $0.52 $0.45 $1.67 $1.33
RAL Stock (based on RPG Group earnings):
Primary $0.50 $1.52
Fully Diluted $0.48 $1.43
CBG Stock (based on CBG Group earnings):
Primary ($0.15) ($0.42)
Fully Diluted ($0.15) ($0.42)
See Accompanying Notes to Condensed Financial Statements.
</TABLE>
<PAGE>
RALSTON PURINA COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Condensed)
(Dollars in millions)
<TABLE>
<S> <C> <C>
March 31, Sept. 30,
1996 1995
Assets --------- ---------
Current Assets
Cash and cash equivalents $ 61.6 $ 44.3
Receivables, less allowance for doubtful
accounts of $35.2 and $34.3, respectively 782.4 801.4
Inventories
Raw materials and supplies 214.6 209.1
Work in process 130.4 111.4
Finished products 466.0 445.7
Other current assets 167.0 151.1
--------- ---------
Total Current Assets 1,822.0 1,763.0
--------- ---------
Investments and Other Assets 1,455.0 1,453.3
--------- ---------
Property at Cost 2,725.8 2,606.0
Accumulated depreciation 1,331.3 1,255.1
--------- ---------
1,394.5 1,350.9
--------- ---------
Total $ 4,671.5 $ 4,567.2
========= =========
Liabilities and Shareholders Equity
Current Liabilities
Current maturities of long-term debt $ 284.3 $ 303.2
Notes payable 523.3 503.2
Accounts payable 391.3 400.5
Other current liabilities 556.2 534.3
--------- ---------
Total Current Liabilities 1,755.1 1,741.2
--------- ---------
Long-Term Debt 1,547.2 1,602.1
--------- ---------
Deferred Income Taxes 58.7 53.6
--------- ---------
Other Liabilities 503.8 479.3
--------- ---------
Redeemable Preferred Stock 336.9 348.7
--------- ---------
Unearned ESOP Compensation (132.5) (151.9)
--------- ---------
Shareholders Equity
Preferred stock
Common stock 11.5 11.5
Capital in excess of par value 207.7 169.6
Retained earnings 1,205.4 1,089.7
Cumulative translation adjustment (62.9) (50.3)
Common stock in treasury, at cost (475.6) (481.7)
Unearned portion of restricted stock (4.7) (5.3)
Value of common stock held in Grantor Trust (279.1) (239.3)
--------- ---------
Total Shareholders Equity 602.3 494.2
--------- ---------
Total $ 4,671.5 $ 4,567.2
========= =========
</TABLE>
See Accompanying Notes to Condensed Financial Statements.
<PAGE>
RALSTON PURINA COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Condensed)
(Dollars in millions)
<TABLE>
<S> <C> <C>
Six Months Ended
March 31,
1996 1995
Cash Flow from Operations --------- ---------
Net earnings $ 187.6 $ 152.5
Non-cash items included in income 124.4 144.7
Changes in assets and liabilities
used in operations (40.0) (48.5)
Other, net 11.3 11.5
--------- ---------
Net cash flow from operations 283.3 260.2
--------- ---------
Cash Flow from Investing Activities
Acquisition of businesses (25.1)
Property additions, net (125.8) (127.9)
Other, net 1.2 (9.1)
--------- ---------
Net cash provided (used) by investing activities (149.7) (137.0)
--------- ---------
Cash Flow from Financing Activities
Net cash flow provided (used) by debt (32.5) (82.2)
Dividends paid (72.8) (75.7)
Other, net (7.5) (6.4)
--------- ---------
Net cash provided (used) by financing activities (112.8) (164.3)
--------- ---------
Effect of Exchange Rate Changes on Cash (3.5) (4.8)
--------- ---------
Net Increase (Decrease) in Cash and
Cash Equivalents 17.3 (45.9)
Cash and Cash Equivalents, Beginning of Period 44.3 126.0
--------- ---------
Cash and Cash Equivalents, End of Period $ 61.6 $ 80.1
========= =========
</TABLE>
See Accompanying Notes to Condensed Financial Statements.
<PAGE>
RALSTON PURINA COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1996
(Dollars in millions except per share data)
Note 1 - The accompanying unaudited financial statements have been
prepared in accordance with the instructions for Form 10-Q and do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
the opinion of management, all adjustments considered necessary for a
fair presentation have been included. Operating results for any
quarter are not necessarily indicative of the results for any other
quarter or for the full year. These statements should be read in
conjunction with the financial statements and notes thereto included in
the Ralston Purina Company (the Company) Annual Report to Shareholders
for the year ended September 30, 1995.
Note 2 - Primary earnings per share are based on the average number of
shares outstanding during the period, excluding 4,173,000 and
4,086,000 shares of RAL Stock held by Ralston's Grantor Trust at March
31, 1996 and 1995, respectively. Fully diluted earnings per share are
based on the average number of shares used for the primary earnings per
share calculation, adjusted for the dilutive effect of convertible
preferred stock, stock options, convertible debentures and compensation
awards, when the effects of inclusion of such securities does not
result in anti-dilution. The shares used in earnings per share
computations were as follows:
<TABLE>
<S> <C> <C> <C> <C>
(in millions)
Quarter Quarter Six Months Six Months
March 31, March 31, March 31, March 31,
1996 1995 1996 1995
------- ------- --------- ---------
Primary 101.8 101.9 101.8 101.9
Fully Diluted 110.9 112.5 110.8 112.5
(Pro forma in prior year
assuming one class of
common stock)
Primary
RAL Stock 100.0 100.0
CBG Stock 20.6 20.6
Fully Diluted
RAL Stock 110.6 110.5
CBG Stock 22.4 22.4
</TABLE>
Note 3 - As of March 31, 1996, there were 101,815,000 shares of RAL
Stock outstanding, exclusive of 8,700,000 shares held in treasury and
4,173,000 Grantor Trust shares. At September 30, 1995, there were
101,721,000 shares of RAL Stock outstanding, exclusive of 8,831,000
RAL Stock shares held in treasury and 4,135,000 RAL Stock shares held
by the Grantor Trust.
Note 4 - Other (income)/expense, net for six months consists of the
following:
<TABLE>
<S> <C> <C>
March 31, March 31,
1996 1995
--------- ---------
Net translation and exchange loss $18.1 $8.5
Investment income (4.5) (3.9)
Miscellaneous (income)/expense 0.8 (2.5)
--------- ---------
$14.4 $2.1
========= =========
Note 5 - Investments and Other Assets consists of the following:
March 31, Sept. 30,
1996 1995
--------- ---------
Goodwill $516.2 $519.6
Other intangible assets 274.4 286.9
Investments in affiliated companies 289.7 295.6
Deferred charges and other assets 374.7 351.2
--------- ---------
$1,455.0 $1,453.3
========= =========
</TABLE>
Note 6 - On March 29, 1996, the Company announced its intention to
separate its international agricultural animal feeds business in a
tax-free spin-off to shareholders. Completion of the spin-off may take
nine to 12 months and is contingent upon a favorable tax ruling from
the Internal Revenue Service and approval by the Ralston Purina Board
of Directors.
Note 7 - During the quarter and six months ended March 31, 1995, the
Company recorded charges of $11.7, after taxes, and $28.0, after
taxes, respectively, or $.12 and $.11 per primary and fully diluted
share for the quarter and $.28 and $.25 per share, respectively, for
the six months, in connection with its restructuring of its worldwide
carbon zinc battery production capacity.
On a pre-tax basis, charges for restructuring for the six months were
$35.0 and consisted of termination benefits of $23.7, other cash exit
costs of $3.3 and non-cash charges of $8.0, primarily related to
anticipated losses on disposal of land, buildings and machinery and
equipment.
During the current quarter and six months, 413 and 692 employees were
severed in connection with the restructuring plan. One plant was
closed during the current quarter. Cash exit costs incurred in the
current quarter and six months related to the restructuring plan were
$5.5 and $12.0, respectively.
Note 8 - On May 15, 1995, in the CBG Stock Exchange, the Company
exchanged each outstanding share of Ralston-Continental Baking Group
Common Stock (CBG Stock), a class of common stock intended to reflect
separately the performance of the Company's fresh bakery products
business (the CBG Group), for .0886 shares of Ralston-Ralston Purina
Group Common Stock, which was intended to reflect separately the
performance of the Company's other businesses (the RPG Group).
Ralston-Ralston Purina Group Common Stock has now been redesignated
as Ralston Purina Common Stock (RAL Stock).
Note 9 - Effective July 22, 1995, the Company sold Continental Baking
Company (CBC) to Interstate Bakeries Corporation (IBC) and its wholly
owned subsidiary, Interstate Brands Corporation, for $220 in cash and
16,923,077 shares of common stock of IBC (the IBC Stock). The
Company's earnings and cash flows reflect the operations of CBC through
July 22, 1995.
The following pro forma consolidated statement of earnings reflects
the results of operations of the Company for the quarter and six
months ended March 31, 1995 as if the sale of CBC and the CBG Stock
Exchange had occurred as of October 1, 1994. Such statement has been
prepared by adjusting the historical statement for the effects of
revenues, expenses, assets and liabilities and the recapitalization
which might have occurred had the sale of CBC and the CBG Stock
Exchange been effected as of October 1, 1994.
This pro forma financial statement may not necessarily reflect the
consolidated results of operations that would have existed had the sale
of CBC and the CBG Stock Exchange occurred as of the date specified.
<PAGE>
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
(Dollars in millions except per share data)
<TABLE>
<S> <C> <C>
Quarter Six Months
Ended Ended
March 31, March 31,
1995 1995
-------- --------
Net Sales (a) $1,281.5 $2,794.6
-------- --------
Costs and Expenses
Cost of products sold (a) 753.5 1,616.1
Selling, general and administrative (a) 244.4 477.3
Advertising and promotion (a) 129.3 291.9
Interest expense (b) 44.1 90.3
Provision for restructuring (a) 12.1 35.0
Other (income)/expense, net (a) 2.7 2.5
-------- --------
1,186.1 2,513.1
-------- --------
Earnings before Income Taxes
and Equity Earnings (Loss) 95.4 281.5
Income Taxes (c) (43.6) (122.8)
-------- --------
Earnings before Equity Earnings (Loss) 51.8 158.7
Equity Earnings (Loss), Net of Taxes (d) 0.4 (0.4)
-------- --------
Net Earnings $ 52.2 $ 158.3
======== ========
Earnings per Share (e):
Primary $ 0.47 $ 1.47
Fully Diluted $ 0.46 $ 1.40
Average Shares Outstanding Used
in Earnings per Share Computation (e):
Primary 101.9 101.9
Fully Diluted (f) 111.3 111.2
</TABLE>
(a) Exludes results of operations for CBC.
(b) Reflects reduction of interest expense at an average rate of 6.75%
assuming debt repayment of $160 by the Company from a portion of
the CBC sale proceeds.
(c) Reflects the applicable federal and state statutory tax rates for
the pro forma adjustments.
(d) Reflects the Company's 46% share of IBC pro forma earnings (loss).
(e) Reflects exchange of CBG Stock for 1.8 million shares of RAL Stock.
(f) Reflects redemption of Redeemable Preferred Stock allocated to CBC
ESOP participants.
<PAGE>
<TABLE>
RALSTON PURINA COMPANY Exhibit 11
COMPUTATION OF EARNINGS PER SHARE (PRO FORMA
IN PRIOR YEAR ASSUMING ONE CLASS OF COMMON STOCK)
(in millions except per share data)
Six Months Ended
March 31,
1996 1995
PRO FORMA EARNINGS PER COMMON SHARE OUTSTANDING --------- ---------
<S> <C> <C>
Net earnings $187.6 $152.5
Dividend on Series A ESOP convertible
preferred stock, net of tax (7.2) (9.6)
--------- ---------
Earnings available to common shareholders $180.4 $142.9
========= =========
Weighted average shares - primary
earnings per share calculation 101.8 * 101.9 *
========= =========
Earnings per common share outstanding $1.77 $1.40
========= =========
PRO FORMA EARNINGS PER SHARE ASSUMING FULL DILUTION
Net earnings $187.6 $152.5
Adjustments to net earnings to reflect assumed
ESOP preferred stock conversion (2.2) (3.1)
--------- ---------
Net earnings for fully diluted
earnings per share calculation $185.4 149.4
========= =========
Weighted average number of common shares outstanding 101.8 * 101.9 *
Convertible preferred stock 6.9 9.6
Dilutive effect of stock options 1.8 0.8
Dilutive effect of deferred compensation awards 0.3 0.2
--------- ---------
Weighted average shares - fully diluted
earnings per share calculation 110.8 112.5
========= =========
Earnings per share assuming full dilution $1.67 $1.33
========= =========
</TABLE>
* Excludes 4,173,000 and 4,086,000 shares held in Grantor Trust at
March 31, 1996 and 1995.
<PAGE>
RALSTON PURINA COMPANY Exhibit 11
COMPUTATION OF EARNINGS PER SHARE FOR RAL STOCK *
(in millions except per share data)
<TABLE>
<S> <C>
Six Months Ended
March 31,
1995
EARNINGS PER COMMON SHARE OUTSTANDING ---------
Net earnings for RPG Group $160.3
Dividend on Series A ESOP convertible
preferred stock, net of tax (8.7)
---------
Earnings after preferred stock dividend 151.6
=========
Weighted average shares - primary
earnings per share calculation 100.0 **
=========
Earnings per common share outstanding $1.52
=========
EARNINGS PER SHARE ASSUMING FULL DILUTION
Net earnings for RPG Group $160.3
Adjustments to net earnings to reflect assumed
ESOP preferred stock conversion (2.3)
---------
Net earnings for fully diluted
earnings per share calculation 158.0
=========
Weighted average number of common shares outstanding 100.0 **
Convertible preferred stock 9.4
Dilutive effect of stock options 0.9
Dilutive effect of deferred compensation awards 0.2
---------
Weighted average shares - fully diluted
earnings per share calculation 110.5
=========
Earnings per share assuming full dilution $1.43
=========
* Prior to May 15, 1995, RAL Stock reflected operations of the RPG Group
only.
** Excludes 4,086,000 shares held in Grantor Trust at March 31, 1995.
</TABLE>
<PAGE>
RALSTON PURINA COMPANY Exhibit 11
COMPUTATION OF EARNINGS PER SHARE FOR CBG STOCK
(in millions except per share data)
<TABLE>
26 Weeks Ended
March 25,
1995
LOSS PER COMMON SHARE OUTSTANDING -----------
<S> <C>
Net loss for CBG Group ($14.9)
Dividend on Series A ESOP convertible
preferred stock, net of tax (0.9)
---------
Loss after preferred stock dividend (15.8)
=========
Weighted average number of shares outstanding 20.6
Shares issuable with respect to RPG Group's
retained interest in the CBG Group 16.7
---------
Weighted average shares - primary
earnings per share calculation 37.3
=========
Loss per common share outstanding (0.42)
=========
LOSS PER SHARE ASSUMING FULL DILUTION
Net loss for CBG Group ($14.9)
Adjustments to net loss to reflect assumed
ESOP preferred stock conversion (1.4)
---------
Net loss for fully diluted
earnings per share calculation (16.3)
=========
Weighted average number of common shares outstanding 20.6
Shares issuable with respect to RPG Group's
retained interest in the CBG Group 16.7
Convertible preferred stock 1.7
Dilutive effect of deferred compensation awards 0.1
---------
Weighted average shares - fully diluted
earnings per share calculation 39.1
=========
Loss per share assuming full dilution ($0.42)
=========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE MARCH 31, 1996 RALSTON PURINA COMPANY BALANCE SHEET
AND STATEMENT OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> MAR-31-1996
<CASH> 61,600
<SECURITIES> 0
<RECEIVABLES> 817,600
<ALLOWANCES> 35,200
<INVENTORY> 811,000
<CURRENT-ASSETS> 1,822,000
<PP&E> 2,725,800
<DEPRECIATION> 1,331,300
<TOTAL-ASSETS> 4,671,500
<CURRENT-LIABILITIES> 1,755,100
<BONDS> 1,547,200
336,900
0
<COMMON> 11,500
<OTHER-SE> 590,800
<TOTAL-LIABILITY-AND-EQUITY> 4,671,500
<SALES> 3,096,500
<TOTAL-REVENUES> 3,096,500
<CGS> 1,812,100
<TOTAL-COSTS> 1,812,100
<OTHER-EXPENSES> 887,900
<LOSS-PROVISION> 0<F1>
<INTEREST-EXPENSE> 99,200
<INCOME-PRETAX> 297,300
<INCOME-TAX> 113,000
<INCOME-CONTINUING> 187,600
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 187,600
<EPS-PRIMARY> 1.77
<EPS-DILUTED> 1.67
<FN>
<F1>LOSS-PROVISION INCLUDED IN OTHER EXPENSE ABOVE.
</FN>
</TABLE>
