EXHIBIT 11
ARMCO INC.
COMPUTATION OF INCOME (LOSS) PER SHARE
(Dollars and shares in millions, except per share amounts)
Three Months Ended Nine Months Ended
PRIMARY September 30, September 30,
- ------- --------------- ----------------
1994 1993 1994 1993
------ ------ ------ ------
Net income (loss) applicable to common
stock (After preferred dividends of
$4.5 for the three months ended
September 30, 1994 and 1993; and $13.4
for the nine months ended September 30,
1994 and 1993):
Income (loss) from continuing operations $20.9 $(192.5) $ 54.7 $(223.9)
Loss from discontinued operations - (35.0) - (25.8)
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Income (loss) before cumulative effect
of accounting changes 20.9 (227.5) 54.7 (249.7)
Cumulative effect of changes in
accounting for certain postretirement and
postemployment benefits and income taxes - - - (307.5)
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Net income (loss) $ 20.9 $(227.5) $ 54.7 $(557.2)
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Weighted average number of common shares 104.8 103.9 104.5 103.8
Weighted average number of common
equivalent shares 0.1 - 0.1 -
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Average common shares outstanding as
adjusted 104.9 103.9 104.6 103.8
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Income (loss) per share:
Income (loss) from continuing operations $ 0.20 $(1.85) $ 0.52 $(2.16)
Loss from discontinued operations - (0.34) - (0.25)
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Income (loss) before cumulative effect
of accounting changes 0.20 (2.19) 0.52 (2.41)
Cumulative effect of changes in
accounting for certain postretirement and
postemployment benefits and income taxes - - - (2.97)
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Net income (loss) per share $ 0.20 $(2.19) $ 0.52 $(5.38)
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FULLY DILUTED*
Net income (loss) applicable to common
stock (After preferred dividends of $13.4
for the nine months ended September 30, 1994
and $4.5 and $13.4 for the three and nine
months ended September 30, 1993):
Income (loss) from continuing operations $25.4 $(192.5) $ 54.7 $(223.9)
Loss from discontinued operations - (35.0) - (25.8)
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Income (loss) before cumulative effect
of accounting changes 25.4 (227.5) 54.7 (249.7)
Cumulative effect of changes in
accounting for certain postretirement
and postemployment benefits and
income taxes - - - (307.5)
- ------------------------------------------------------------------------------
Net income (loss) $ 25.4 $(227.5) $ 54.7 $(557.2)
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Weighted average number of common shares 104.8 103.9 104.5 103.8
Weighted average number of common
equivalent shares 0.1 ** 0.1 **
Weighted average number of preferred
shares on an "if converted" basis 22.7 ** ** **
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Average common shares outstanding
as adjusted 127.6 103.9 104.6 103.8
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Income (loss) per share:
Income (loss) from continuing
operations $ 0.20 $ (1.85) $ 0.52 $ (2.16)
Loss from discontinued operations - (0.34) - (0.25)
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Income (loss) before cumulative
effect of accounting changes $ 0.20 (2.19) 0.52 (2.41)
Cumulative effect of changes in
accounting for postretirement
and postemployment benefits and
income taxes - - - (2.97)
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Net income (loss) per share $ 0.20 $ (2.19) $ 0.52 $ (5.38)
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Shares of stock outstanding at
September 30
Common 104.9 103.9
Preferred - $2.10 Class A 1.7 1.7
Preferred - $3.625 Class A 2.7 2.7
Preferred - $4.50 Class B 1.0 1.0
<FN>
* Calculation of fully diluted loss per share is submitted in accordance with
Securities Exchange Act of 1934 Release No. 9083, although it is contrary to
paragraph 40 of APB Opinion No. 15 because it produces an antidilutive result,
or is not required by footnote 2 to paragraph 14 of APB Opinion No. 15 because
it results in dilution of less than 3%.
** Antidilutive