7. EARNINGS PER ORDINARY SHARE

Earnings per ordinary share are calculated on the profit after taxation, minority interests and preference dividends of US$115.7 million (1996: US$27.9 million) and on the weighted average number of ordinary shares of 1,794.6 million (1996: 1,740.8 million) in issue during the year. The weighted average number excludes the Company's ordinary shares held by the Trustee under the Senior Executive Share Incentive Schemes (note 16). Earnings per ordinary share excluding discontinued activities and exceptional items are calculated on the profit after taxation, minority interests and preference dividends and after adjusting for the discontinued activities and exceptional items of US$38.4 million (1996: US$110.4 million). Full conversion of the convertible cumulative preference shares (note 15) and full exercise of the options granted under the Senior Executive Share Incentive Schemes would not result in a material dilution of earnings per ordinary share.