Exhibit 11 UNION CARBIDE CORPORATION AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (In millions of dollars except per share amounts) Quarter Ended Sept. 30, 1997 1996 Earnings Per Share - Primary Net income $ 181 $ 161 Less: Preferred stock dividend 3 3 Appreciation on redeemed preferred stock 12 - Net income for primary income calculation $ 166 $ 158 Weighted average number of common and common equivalent shares applicable to primary earnings per share calculation Weighted average number of shares outstanding 123,957,271 129,104,998 Dilutive effect of stock options 4,195,877 4,331,086 128,153,148 133,436,084 Earnings per share - primary $ 1.30 $ 1.19 Earnings Per Share - Fully Diluted Net income for primary income calculation $ 166 $ 158 Add back: Preferred stock dividend 3 3 Net income for fully diluted income calculation $ 169 $ 161 Weighted average number of common and common equivalent shares applicable to fully diluted earnings per share calculation Weighted average number of shares outstanding 123,957,271 129,104,998 Dilutive effect of stock options 4,195,877 4,576,637 Put options - - Shares issuable upon conversion of UCC convertible preferred stock 15,473,657 16,100,050 143,626,805 149,781,685 Earnings per share - fully diluted $ 1.18 $ 1.08 Nine Months Ended Sept. 30, 1997 1996 Earnings Per Share - Primary Net income $ 529 $ 491 Less: Preferred stock dividend 9 9 Appreciation on redeemed preferred stock 24 - Net income for primary income calculation $ 496 $ 482 Weighted average number of common and common equivalent shares applicable to primary earnings per share calculation Weighted average number of shares outstanding 125,008,093 132,320,586 Dilutive effect of stock options 4,188,264 4,554,764 129,196,357 136,875,350 Earnings per share - primary $ 3.84 $ 3.52 Earnings Per Share - Fully Diluted Net income for primary income calculation $ 496 $ 482 Add back: Preferred stock dividend 9 9 Net income for fully diluted income calculation $ 505 $ 491 Weighted average number of common and common equivalent shares applicable to fully diluted earnings per share calculation Weighted average number of shares outstanding 125,008,093 132,320,586 Dilutive effect of stock options 4,210,746 4,701,880 Put options 3,060 - Shares issuable upon conversion of UCC convertible preferred stock 15,638,615 16,144,822 144,860,514 153,167,288 Earnings per share - fully diluted $ 3.49 $ 3.20