GATX CORPORATION AND SUBSIDIARIES _________ COMPUTATION OF DILUTED NET INCOME PER SHARE OF COMMON STOCK In Millions, Except Per Share Amounts Three Months Ended Nine Months Ended September 30 September 30 ---------------------------------- --------------------------------- 1998 1997 1998 1997 ---------------- -------------- -------------- --------------- Average number of shares used to compute basic earnings per share....................... 49.2 48.8 49.1 43.9 Shares issuable upon assumed exercise of stock options reduced by the number of shares which could have been purchased with the proceeds from the exercise of the stock options 1.2 1.0 1.2 .8 Common Stock issuable upon assumed conversion of Preferred Stock.................. .1 .1 .1 4.8 ---------------- -------------- -------------- --------------- Total shares....................................... 50.5 49.9 50.4 49.5 ================ ============== ============== =============== Net income, as adjusted per basic computation.................................... $38.1 $28.0 $106.3 $82.8 Add - Dividends paid and accrued on Preferred Stock................................ - - - 6.6 ---------------- -------------- -------------- --------------- Net income, as adjusted............................ $38.1 $28.0 $106.3 $89.4 ================ ============== ============== =============== Diluted net income per share....................... $ .76 $ .56 $ 2.11 $1.80 ================ ============== ============== =============== <FN> Note: See discussion of FAS 128 and stock split on Exhibit 11A. </FN>