Exhibit 11 Arvin Industries, Inc. Computation of Earnings Per Share of Common Stock (Unaudited) (amounts in millions except per share amounts) Basic Earnings Per Share 1997 1996 1995 - ------------------------ ---- ---- ---- Income from continuing operations $ 65.0 $ 47.1 $ 17.9 Income from discontinued operations, net of tax 1.6 -- 1.1 ---- ---- ---- Net income to common stock $ 66.6 $ 47.1 $ 19.0 ==== ==== ==== Average shares of common stock outstanding 23.0 22.4 22.3 ==== ==== ==== Earnings per average share of common stock: Continuing operations $ 2.83 $ 2.10 $ .80 Discontinued operations .07 -- .05 ---- ---- ---- $ 2.90 $ 2.10 $ .85 ==== ==== ==== Diluted Earnings Per Share: - --------------------------- Income from continuing operations $ 65.0 $ 47.1 $ 17.9 Income from discontinued operations, net of tax 1.6 -- 1.1 ---- ---- ---- Net income 66.6 47.1 19.0 Add back 7.5% convertible debentures' after tax interest expense (if dilutive) -- 2.9 -- ---- ---- ---- Net income to common stock assuming maximum dilution $ 66.6 $ 50.0 $ 19.0 ==== ==== ==== Average shares of common stock outstanding 23.0 22.4 22.3 Incremental common shares applicable to common stock options based on the average market price during the .4 .1 .1 period Average common shares issuable assuming conversion of 7.5% convertible subordinated debentures (if dilutive) -- 2.1 -- ---- ---- ---- Average common shares assuming maximum dilution 23.4 24.6 22.4 ==== ==== ==== Diluted earnings per average share assuming maximum dilution: Continuing operations $ 2.78 $ 2.03 $ .80 Discontinued operations .07 -- .05 ---- ---- ---- $ 2.85 $ 2.03 $ .85 ==== ==== ====