EXHIBIT 11 UNITED TECHNOLOGIES CORPORATION AND SUBSIDIARIES Computations of Basic Earnings Per Share and Diluted Earnings Per Share For the Five Years Ended December 31, 1997 (Millions of Dollars, except per share amounts) 1997 1996 1995 1994 (1) 1993 Net Income $ 1,072 $ 906 $ 750 $ 585 $ 487 ESOP Convertible Preferred Stock dividend (32) (30) (27) (22) (43) Basic earnings for period $ 1,040 $ 876 $ 723 $ 563 $ 444 ESOP Convertible Preferred Stock adjustment 27 24 21 17 16 Diluted earnings for period $ 1,067 $ 900 $ 744 $ 580 $ 460 Basic average number of shares outstanding during the period (thousands) 234,443 241,454 245,642 251,077 249,264 Stock awards (thousands) 5,878 4,877 2,975 2,630 2,623 ESOP convertable preferred stock (thousands) 13,234 12,275 10,889 9,285 25,152 Diluted average number of shares outstanding during the period (thousands) 253,555 258,606 259,506 262,992 277,039 Basic earnings per common share $ 4.44 $ 3.63 $ 2.94 $ 2.24 $ 1.78 Diluted earnings per common share $ 4.21 $ 3.48 $ 2.87 $ 2.20 $ 1.66 (1) In 1994, the Corporation adopted AICPA Statement of Position (SOP) 93-6, "Employers' Accounting for Employee Stock Ownership Plans" and conformed its calculations of earnings per common share to the requirements of this SOP.