CARPENTER TECHNOLOGY CORPORATION AND SUBSIDIARIES Exhibit 11
EARNINGS PER COMMON SHARE COMPUTATIONS
For the Three and Nine Months Ended March 31, 1994 and 1993
Three Months Nine Months
------------------ ------------------
1994 1993 1994 1993
---- ---- ---- ----
(in thousands, except per share data)
Net Income (Loss) for Primary
Earnings Per Common Share
- ------------------------------
Income before extraordinary charge
and cumulative effect of changes
in accounting principles $ 12,825 $ 10,202 $ 22,957 $ 14,768
Dividends accrued on convertible
preferred stock, net of
income taxes (388) (406) (1,207) (1,223)
-------- -------- -------- --------
Income for primary earnings per
common share before extraordinary
charge and cumulative effect of
changes in accounting principles 12,437 9,796 21,750 13,545
Extraordinary charge, net of
of income taxes (2,039) - (2,039) -
Cumulative effect of changes
in accounting principles,
net of income taxes - - - (74,676)
-------- -------- -------- --------
Net income (loss) for primary
earnings per common share $ 10,398 $ 9,796 $ 19,711 $(61,131)
======== ======== ======== ========
Weighted Average Common Shares
- ------------------------------
Weighted average number of
common shares outstanding 8,047 7,956 8,011 8,023
Effect of shares issuable under
the stock option plans 54 7 39 2
-------- -------- -------- --------
Weighted average common shares 8,101 7,963 8,050 8,025
======== ======== ======== ========
Primary Earnings (Loss)
Per Common Share
- -----------------------
Primary earnings per common share
before extraordinary charge and
cumulative effect of changes in
accounting principles $ 1.54 $ 1.22 $ 2.70 $ 1.69
Extraordinary charge (.25) - (.25) -
Cumulative effect of changes in
accounting principles - - - (9.32)
-------- -------- -------- --------
Primary earnings (loss)
per common share $ 1.29 $ 1.22 $ 2.45 $ (7.63)
======== ======== ======== ========
Primary loss per common share for the cumulative effect of changes in account-
ing principles of $(9.32) is computed using the weighted average common shares
outstanding for the year ended June 30, 1993 of 8,009. The result is not
materially different from using the weighted average shares for the nine
months ended March 31, 1993.
E-2
CARPENTER TECHNOLOGY CORPORATION AND SUBSIDIARIES Exhibit 11
EARNINGS PER COMMON SHARE COMPUTATIONS
For the Three and Nine Months Ended March 31, 1994 and 1993
Three Months Nine Months
------------------ ------------------
1994 1993 1994 1993
---- ---- ---- ----
(in thousands, except per share data)
Net Income (Loss) for Fully Diluted
Earnings Per Common Share
- -----------------------------------
Income before extraordinary charge
and cumulative effect of changes
in accounting principles $ 12,825 $ 10,202 $ 22,957 $ 14,768
Shortfall between common and
preferred dividend (128) (193) (525) (589)
-------- -------- -------- --------
Income for fully diluted earnings per
common share before extraordinary
charge and cumulative effect of
changes in accounting principles 12,697 10,009 22,432 14,179
Extraordinary charge, net of
income taxes (2,039) - (2,039) -
Cumulative effect of changes in
accounting principles, net of
income taxes - - - (74,676)
-------- -------- -------- --------
Net income (loss) for fully diluted
earnings per common share $ 10,658 $ 10,009 $ 20,393 $(60,497)
======== ======== ======== ========
Weighted Average Common Shares
- ------------------------------
Weighted average number of
common shares outstanding 8,047 7,956 8,011 8,023
Conversion of preferred shares 461 461 461 461
Effect of shares issuable
under the stock option plans 63 7 66 2
-------- -------- -------- --------
Weighted average common shares 8,571 8,424 8,538 8,486
======== ======== ======== ========
Fully Diluted Earnings (Loss)
Per Common Share
- -----------------------------
Fully diluted earnings per common
share before extraordinary charge
and cumulative effects of changes
in accounting principles $ 1.49 $ 1.19 $ 2.63 $ 1.67
Extraordinary charge (.24) - (.24) -
Cumulative effect of changes
in accounting principles - - - (8.80)
-------- -------- -------- --------
Fully diluted earnings (loss)
per common share $ 1.25 $ 1.19 $ 2.39 $ (7.13)
======== ======== ======== ========
Fully diluted loss per common share for the cumulative effect of changes in
accounting principles of $(8.80) is computed using the weighted average common
shares outstanding for the year ended June 30, 1993 of 8,009. The result is
not materially different from using the weighted average shares for the nine
months ended March 31, 1993. E-3