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EXHIBIT 11 Page 1 of 2
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
(In millions except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
-------- -------- -------- --------
Computation for Statements of Income
------------------------------------
Net income per statements of income $ 181.2 $ 178.5 $ 351.9 $ 323.4
------- ------- ------- -------
Weighted average number of shares
outstanding 131.5 137.2 132.0 137.7
------- ------- ------- -------
Primary earnings per share $ 1.38 $ 1.30 $ 2.67 $ 2.35
======= ======= ======= =======
Additional Primary Computation
------------------------------
Net income per statements of income $ 181.2 $ 178.5 $ 351.9 $ 323.4
------- ------- ------- -------
Adjustment to weighted average
number of shares outstanding:
Weighted average number of
shares outstanding per
primary computation above 131.5 137.2 132.0 137.7
Dilutive effect of outstanding
options, stock appreciation
rights (SARs) and performance
share units (PSUs) (as
determined by the application
of the treasury stock
method) (1) 1.2 1.1 1.2 1.2
------- ------- ------- -------
Weighted average number of
shares outstanding,
as adjusted 132.7 138.3 133.2 138.9
======= ======= ======= =======
Primary earnings per share,
as adjusted (2):
Net income $ 1.37 $ 1.29 $ 2.64 $ 2.33
======= ======= ======= =======
(1) See Note 12 of Notes to Consolidated Financial Statements in Norfolk
Southern's 1994 Annual Report on Form 10-K for a description of the
Long-Term Incentive Plan.
(2) 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.
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EXHIBIT 11 Page 2 of 2
NORFOLK SOUTHERN CORPORATION AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS
(In millions except per share amounts)
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
-------- -------- -------- --------
Fully Diluted Computation
-------------------------
Net income per statements of income $ 181.2 $ 178.5 $ 351.9 $ 323.4
Adjustment to increase earnings
to requisite level to earn
maximum PSUs, net of tax effect 13.1 27.0 25.4 48.8
------- ------- ------- -------
Net income, as adjusted $ 194.3 $ 205.5 $ 377.3 $ 372.2
======= ======= ======= =======
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 1 132.7 138.3 133.2 138.9
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 -- 0.1 --
Additional shares issuable at
maximum level for PSUs 0.1 0.1 0.1 0.1
------- ------- ------- -------
Weighted average number of
shares, as adjusted 132.9 138.4 133.4 139.0
======= ======= ======= =======
Fully diluted earnings
per share (3): $ 1.46 $ 1.48 $ 2.83 $ 2.68
======= ======= ======= =======
(3) 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.