PAGE 19
EXHIBIT 11 Page 1
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1994 1993 1994 1993
-------- -------- ------- -------
Computation for Statements of Income
- ------------------------------------
Income before cumulative effects of
changes in accounting principles $ 178.5 $ 155.2 $ 323.4 $ 294.1
------- ------- ------- -------
Cumulative effects of changes in
accounting principles $ -- $ -- $ -- $ 223.3
------- ------- ------- -------
Weighted average number of shares
outstanding 137.2 139.7 137.7 139.9
------- ------- ------- -------
Primary earnings per share:
Income before accounting changes $ 1.30 $ 1.11 $ 2.35 $ 2.10
Cumulative effects of accounting
changes -- -- -- 1.60
------- ------- ------- -------
Net income $ 1.30 $ 1.11 $ 2.35 $ 3.70
======= ======= ======= =======
Additional Primary Computation
- ------------------------------
Income before cumulative effects of
changes in accounting principles $ 178.5 $ 155.2 $ 323.4 $ 294.1
------- ------- ------- -------
Cumulative effects of changes in
accounting principles $ -- $ -- $ -- $ 223.3
------- ------- ------- -------
Adjustment to weighted average
number of shares outstanding:
Weighted average number of
shares outstanding per
primary computation above 137.2 139.7 137.7 139.9
Dilutive effect of outstanding
options, stock appreciation
rights (SARs) and performance
share units (PSUs) (as
determined by the application
of the treasury stock
method) (F1) 1.1 1.1 1.2 1.2
------- ------- ------- -------
Weighted average number of
shares outstanding,
as adjusted 138.3 140.8 138.9 141.1
======= ======= ======= =======
<FN>
(F1) See Note 13 of Notes to Consolidated Financial Statements in Norfolk
Southern's 1993 Annual Report on Form 10-K for a description of the
Long-Term Incentive Plan.
PAGE 20
EXHIBIT 11 Page 2
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1994 1993 1994 1993
-------- -------- ------- -------
Primary earnings per share,
as adjusted (F2):
Income before accounting changes $ 1.29 $ 1.10 $ 2.33 $ 2.09
Cumulative effects of accounting
changes -- -- -- 1.58
------- ------- ------- -------
Net income $ 1.29 $ 1.10 $ 2.33 $ 3.67
======= ======= ======= =======
<FN>
(F2) These calculations are submitted in accordance with Regulation S-K
item 601(b)(11) although not required by footnote 2 to paragraph 14 of
APB Opinion No. 15 because they result in dilution of less than
3 percent.
PAGE 21
EXHIBIT 11 Page 3
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1994 1993 1994 1993
-------- -------- ------- -------
Fully Diluted Computation
- -------------------------
Income before cumulative effects
of changes in accounting
principles, per primary
computation $ 178.5 $ 155.2 $ 323.4 $ 294.1
Adjustment to increase earnings
to requisite level to earn
maximum PSUs, net of tax effect 27.0 43.8 48.8 83.0
------- ------- ------- -------
Income before cumulative effects,
as adjusted 205.5 199.0 372.2 377.1
Cumulative effects of changes in
accounting principles -- -- -- 223.3
------- ------- ------- -------
Net income, as adjusted $ 205.5 $ 199.0 $ 372.2 $ 600.4
======= ======= ======= =======
Adjustment to weighted average
number of shares outstanding,
as adjusted for additional
primary calculation:
Weighted average number of
shares outstanding, as
adjusted per additional
primary computation on page 1 138.3 140.8 138.9 141.1
Additional dilutive effect of
outstanding options and SARs
(as determined by the
application of the treasury
stock method using period
end market price) -- 0.1 -- --
Additional shares issuable at
maximum level for PSUs 0.1 0.2 0.1 0.2
------- ------- ------- -------
Weighted average number of
shares, as adjusted 138.4 141.1 139.0 141.3
======= ======= ======= =======
PAGE 22
EXHIBIT 11 Page 4
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(In millions except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1994 1993 1994 1993
-------- -------- ------- -------
Fully diluted earnings
per share (F3):
Income before accounting changes $ 1.48 $ 1.41 $ 2.68 $ 2.67
Cumulative effects of
accounting changes -- -- -- 1.58
------- ------- ------- -------
Net income $ 1.48 $ 1.41 $ 2.68 $ 4.25
======= ======= ======= =======
<FN>
(F3) These calculations are submitted in accordance with Regulation S-K
item 601(b)(11) although they are contrary to paragraph 40 of
APB Opinion No. 15 because they produce an anti-dilutive result.