ARMCO INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
(Dollars and shares in millions, Three Months Ended Nine Months Ended
except per share amounts) September 30, September 30,
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1997 1996 1997 1996
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PRIMARY
Income from continuing operations $ 29.7 $ 9.9 $ 59.3 $ 12.8
Preferred stock dividends (4.5) (4.5) (13.4) (13.4)
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Income from continuing operations
applicable to common stock 25.2 5.4 45.9 (0.6)
Income from discontinued operations - 6.5 1.3 6.5
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Income before extraordinary loss
applicable to common stock 25.2 11.9 47.2 5.9
Extraordinary loss on retirement
of debt (3.0) - (3.0) -
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Net income applicable to common stock $ 22.2 $ 11.9 $ 44.2 $ 5.9
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Weighted average number of
common shares 107.0 106.6 106.9 106.5
Weighted average number of common
equivalent shares 0.1 - 0.1 -
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Weighted average common shares
outstanding as adjusted 107.1 106.6 107.0 106.5
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Income per common share from
continuing operations $ 0.24 $ 0.05 $ 0.43 $ 0.00
Income per common share from
discontinued operations - 0.06 0.01 0.06
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Income per common share before
extraordinary loss 0.24 0.11 0.44 0.06
Extraordinary loss on retirement
of debt (0.03) - (0.03) -
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Net income per common share $ 0.21 $ 0.11 $ 0.41 $ 0.06
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FULLY DILUTED*
Income from continuing operations $ 29.7 $ 9.9 $ 59.3 $ 12.8
Preferred stock dividends - - - -
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Income from continuing operations
applicable to common stock 29.7 9.9 59.3 12.8
Income from discontinued operations - 6.5 1.3 6.5
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Income before extraordinary loss
applicable to common stock 29.7 16.4 60.6 19.3
Extraordinary loss on retirement
of debt (3.0) - (3.0) -
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Net income applicable to common stock $ 26.7 $ 16.4 $ 57.6 $ 19.3
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Weighted average number of
common shares 107.0 106.6 106.9 106.5
Weighted average number of common
equivalent shares 0.1 - 0.1 -
Weighted average number of preferred
shares on an "if converted" basis 22.7 22.7 22.7 22.7
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Average common shares outstanding
as adjusted 129.8 129.3 129.7 129.2
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Income per common share from
continuing operations $ 0.23 $ 0.08 $ 0.46 $ 0.10
Income per common share from
discontinued operations - 0.05 0.01 0.05
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Income per common share before
extraordinary loss 0.23 0.13 0.47 0.15
Extraordinary loss on retirement
of debt (0.02) - (0.02) -
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Net income per common share $ 0.21 $ 0.13 $ 0.45 $ 0.15
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Shares of stock outstanding at September 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%.