EXHIBIT 11
ARMCO INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF INCOME (LOSS) PER SHARE
(Dollars in Millions, Except Per Share Amounts)
Year Ended December 31
--------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
I. PRIMARY
Income (loss) from continuing
operations $ 26.0 $ 23.5 $ 65.8 $(247.5) $(402.2)
Less: preferred dividends 17.9 17.9 17.8 17.8 10.3
-------- -------- -------- -------- --------
Income (loss) from continuing
operations after preferred
dividends $ 8.1 $ 5.6 $ 48.0 $(265.3) $(412.5)
======== ======== ======== ======== ========
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles. $ 32.5 $ 29.8 $ 77.7 $(327.0) $(421.5)
Less: preferred dividends 17.9 17.9 17.8 17.8 10.3
-------- -------- -------- -------- --------
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles after
preferred dividends $ 14.6 $ 11.9 $ 59.9 $(344.8) $(431.8)
======== ======== ======== ======== ========
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles $ 32.5 $ 29.8 $ 77.7 $(327.0) $(421.5)
Loss on extraordinary items -- -- -- (7.3) (8.4)
Cumulative effect of changes
in accounting principles -- -- -- (307.5) --
-------- -------- -------- -------- --------
Net income (loss) $ 32.5 $ 29.8 $ 77.7 $(641.8) $(429.9)
Less: preferred dividends 17.9 17.9 17.8 17.8 10.3
-------- -------- -------- -------- --------
Net income (loss) after
preferred dividends $ 14.6 $ 11.9 $ 59.9 $(659.6) $(440.2)
======== ======== ======== ======== ========
Weighted average number of
common shares 106.6 106.0 104.6 103.8 98.8
Weighted average number of
common equivalent shares (A) -- -- 0.1 * *
-------- -------- -------- -------- --------
Total shares for computation 106.6 106.0 104.7 103.8 98.8
======== ======== ======== ======== ========
Primary income (loss) per share:
Income (loss) from continuing
operations $ 0.08 $ 0.05 $ 0.46 $ (2.56) $ (4.18)
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles 0.14 0.11 0.57 (3.32) (4.37)
Loss on extraordinary items -- -- -- (0.07) (0.08)
Cumulative effect of changes
in accounting principles -- -- -- (2.96) --
Net income (loss) 0.14 0.11 0.57 (6.35) (4.45)
EXHIBIT 11
ARMCO INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF INCOME (LOSS) PER SHARE (Continued)
(Dollars in Millions, Except Per Share Amounts)
Year Ended December 31
--------------------------------------------
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
II. FULLY DILUTED
Income (loss) from continuing
operations $ 26.0 $ 23.5 $ 65.8 $(247.5) $(402.2)
Less: preferred dividends -- -- -- 17.8 10.3
-------- -------- -------- -------- --------
Income (loss) from continuing
operations after preferred
dividends $ 26.0 $ 23.5 $ 65.8 $(265.3) $(412.5)
======== ======== ======== ======== ========
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles $ 32.5 $ 29.8 $ 77.7 $(327.0) $(421.5)
Less: preferred dividends -- -- -- 17.8 10.3
-------- -------- -------- -------- --------
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles
after preferred dividends $ 32.5 $ 29.8 $ 77.7 $(344.8) $(431.8)
======== ======== ======== ======== ========
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles $ 32.5 $ 29.8 $ 77.7 $(327.0) $(421.5)
Loss on extraordinary items -- -- -- (7.3) (8.4)
Cumulative effect of changes
in accounting principles -- -- -- (307.5) --
-------- -------- -------- -------- --------
Net income (loss) $ 32.5 $ 29.8 $ 77.7 $(641.8) $(429.9)
Less preferred dividends -- -- -- 17.8 10.3
-------- -------- -------- -------- --------
Net income (loss) after
preferred dividends $ 32.5 $ 29.8 $ 77.7 $(659.6) $(440.2)
======== ======== ======== ======== ========
Weighted average number of
common shares 106.6 106.0 104.6 103.8 98.8
Weighted average number of
common equivalent shares (A) -- -- 0.1 * *
Weighted average number of
preferred shares on an
"if converted" basis 22.7 22.7 22.7 * *
-------- -------- -------- -------- --------
Total shares for computation 129.3 128.7 127.4 103.8 98.8
======== ======== ======== ======== ========
Fully diluted income (loss) per share (B):
Income (loss) from continuing
operations $ 0.20 $ 0.18 $ 0.52 $ (2.56) $ (4.18)
Income (loss) before extra-
ordinary items and cumula-
tive effect of changes in
accounting principles 0.25 0.23 0.61 (3.32) (4.37)
Loss on extraordinary items -- -- -- (0.07) (0.08)
Cumulative effect of changes in
accounting principles -- -- -- (2.96) --
Net income (loss) 0.25 0.23 0.61 (6.35) (4.45)
- -------------------
<FN>
* Antidilutive
NOTES:
(A) Common equivalent shares are included for dilutive stock options as if
the options were exercised and the proceeds used to acquire common shares of
Armco.
(B) Calculation of fully diluted income (loss) per share is submitted for
1996, 1995 and 1994 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 13 of APB Opinion No. 15 because it results in dilution of less
than 3%.