ARMCO INC.
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE
(Dollars and shares in millions, Three Months Ended Six Months Ended
except per share amounts) June 30, June 30,
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1997 1996 1997 1996
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PRIMARY
Income (loss) from continuing operations $20.2 $ (4.0) $29.6 $ 2.9
Preferred stock dividends (4.4) (4.4) (8.9) (8.9)
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Income (loss) from continuing operations
applicable to common stock 15.8 (8.4) 20.7 (6.0)
Income from discontinued operations 1.3 - 1.3 -
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Net income (loss) applicable to
common stock $17.1 $ (8.4) $22.0 $ (6.0)
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Weighted average number of common shares 107.1 106.7 106.9 106.5
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Income (loss) per common share from
continuing operations $0.15 $(0.08) $0.20 $(0.06)
Income per common share from
discontinued operations 0.01 - 0.01 -
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Net income (loss) per common share $0.16 $(0.08) $0.21 $(0.06)
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FULLY DILUTED*
Income (loss) from continuing operations $20.2 $ (4.0) $29.6 $ 2.9
Preferred stock dividends - (4.4) - (8.9)
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Income (loss) from continuing operations
applicable to common stock 20.2 (8.4) 29.6 (6.0)
Income from discontinued operations 1.3 - 1.3 -
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Net income (loss) applicable to
common stock $21.5 $ (8.4) $30.9 $ (6.0)
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Weighted average number of common shares 107.1 106.7 106.9 106.5
Weighted average number of preferred
shares on an "if converted" basis 22.7 ** 22.7 **
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Average common shares outstanding
as adjusted 129.8 106.7 129.6 106.5
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Income (loss) per common share from
continuing operations $0.16 $(0.08) $0.23 $(0.06)
Income per common share from
discontinued operations 0.01 - 0.01 -
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Net income (loss) per common share $0.17 $(0.08) $0.24 $(0.06)
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Shares of stock outstanding at June 30,
Common 107.1 106.6
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%.