BANDAG, INCORPORATED AND SUBSIDIARIES Exhibit 11 COMPUTATION OF EARNINGS PER SHARE For the Three For the Nine Months Ended Months Ended September 30 September 30 1994 1993 1994 1993 (In thousands except per share data) Net earnings per common and common equivalent share: Weighted average number of shares of Common Stock, Class A Common Stock and Class B Common Stock outstanding 26,556 27,183 26,800 27,248 Additional shares assuming exercise of dilutive stock options - based on treasury stock method using average market price 109 109 110 111 _______ _______ _______ _______ AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES 26,665 27,292 26,910 27,359 ======= ======= ======= ======= Net earnings $29,352 $22,547 $66,428 $55,711 ======= ======= ======= ======= Net earnings per common and common equivalent share $1.11 $0.83 $2.47 $2.04 ======= ======= ======= ======= Net earnings per common share assuming full dilution: Weighted average shares outstanding 26,566 27,183 26,800 27,248 Additional shares assuming exercise of dilutive stock options- based on the treasury stock method using the month-end price if higher than the average market price 109 115 110 115 ______ _______ _______ _______ FULLY-DILUTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES 26,665 27,298 26,910 27,363 ======= ======= ======= ======= Net earnings $29,352 $22,547 $66,428 $55,711 ======= ======= ======= ======= Net earnings per common and common equivalent share $1.11 $0.83 $2.47 $2.04 ======= ======= ======= =======