EXHIBIT 11
ARMCO INC.
COMPUTATION OF INCOME (LOSS) PER COMMON SHARE
(Dollars and shares in millions,
except per share amounts) Three Months Ended
PRIMARY March 31,
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1996 1995
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Income from continuing operations $ 6.9 $ 0.9
Preferred stock dividends (4.5) (4.5)
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Income (loss) from continuing operations applicable
to common stock 2.4 (3.6)
Income from discontinued operation - 1.5
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Net income (loss) applicable to common stock $ 2.4 $ (2.1)
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Weighted average number of common shares 106.4 105.6
Weighted average number of common equivalent shares - -
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Average common shares outstanding as adjusted 106.4 105.6
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Income (loss) per share from continuing operations $ 0.02 $ (0.03)
Income per share from discontinued operation - 0.01
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Net income (loss) per share $ 0.02 $ (0.02)
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FULLY DILUTED*
Income from continuing operations $ 6.9 $ 0.9
Preferred stock dividends - (4.5)
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Income (loss) from continuing operations applicable
to common stock 6.9 (3.6)
Income from discontinued operation - 1.5
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Net income (loss) applicable to common stock $ 6.9 $ (2.1)
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Weighted average number of common shares 106.4 105.6
Weighted average number of common equivalent shares - **
Weighted average number of preferred shares on an
"if converted" basis 22.7 **
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Average common shares outstanding as adjusted 129.1 105.6
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Income (loss) per share from continuing operations $ 0.05 $ (0.03)
Income per share from discontinued operation - 0.01
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Net income (loss) per share $ 0.05 $ (0.02)
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Shares of stock outstanding at March 31
Common 106.7 105.9
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 income 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