Exhibit 11
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CONRAIL INC.
------------
EARNINGS PER SHARE COMPUTATIONS
-------------------------------
($ In Millions Except Per Share)
Quarters Ended Nine Months Ended
September 30, September 30,
-------------- -----------------
1994 1993 1994 1993
---- ---- ---- ----
Primary
- -------
Income (loss) before the cumulative
effect of changes in accounting
principles(1) $106 $(3) $175 $128
Dividends declared on Series A
ESOP convertible junior preferred
stock (ESOP Stock), net of
tax benefits (4) (3) (10) (10)
---- ---- ---- ----
102 (6) 165 118
Charges relative to the cumulative
effect of changes in accounting
principles (1) (74)
---- ---- ---- ----
Adjusted net income (loss) $102 $(6) $165 $ 44
==== ==== ==== ====
Fully Diluted
- -------------
Income (loss) before the cumulative
effect of changes in accounting
principles (1) 106 (3) 175 128
Dividends declared on ESOP Stock,
net of tax benefits (3)
Nondiscretionary adjustment (2) (1) (5) (4)
---- ---- ---- ----
105 (6) 170 124
Charges relative to the cumulative
effect of changes in accounting
principles (1) (74)
---- ---- ---- ----
Adjusted net income (loss) $105 $(6) $170 $ 50
==== ==== ==== ====
Page 1 of 3
Exhibit 11
----------
CONRAIL INC.
------------
EARNINGS PER SHARE COMPUTATIONS
-------------------------------
($ In Millions Except Per Share)
Quarters Ended Nine Months Ended
September 30, September 30,
------------------- ----------------------
1994 1993 1994 1993
---------- --------- ---------- ----------
Weighted average number of shares
Primary
Weighted average number of
common shares outstanding 78,943,971 79,507,361 79,184,111 79,701,862
Effect of shares issuable
under stock option plans 516,629 898,615 655,369 1,001,996
---------- ---------- ---------- ----------
79,460,600 80,405,976 79,839,480 80,703,858
========== ========== ========== ==========
Fully diluted
Weighted average number of
common shares outstanding 78,943,971 79,507,361 79,184,111 79,701,862
ESOP Stock 9,863,383 9,907,107 9,956,575
Effect of shares issuable
under stock option plans 516,629 898,615 655,369 1,118,840
---------- ---------- ---------- ----------
89,323,983 80,405,976 89,746,587 90,777,277
========== ========== ========== ==========
Income (loss) per common share
Before the cumulative effect of
changes in accounting principles
Primary $1.29 $(.07) $2.07 $1.47
Fully diluted 1.17 (.07) 1.91 1.36
Cumulative effect of changes in
accounting principles
Primary (.92)
Fully diluted (.81)
Net income (loss) per common share
Primary $1.29 $(.07) $2.07 $ .55
Fully diluted 1.17 (.07) 1.91 .55
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Exhibit 11
----------
CONRAIL INC.
------------
EARNINGS PER SHARE COMPUTATIONS
-------------------------------
[CAPTION]
($ In Millions Except Per Share)
Notes: 1. Conrail adopted Statement of Financial Accounting
Standards No. 106 ("Employers'Accounting for
Postretirement Benefits Other Than Pensions") and
Statement of Financial Accounting Standards No. 109
("Accounting for Income Taxes") effective January 1,
1993. As a result, Conrail recorded cumulative
after tax charges of $22 million and $52 million,
respectively.
2. Represents the increase, net of income tax benefits,
in ESOP-related expenses assuming conversion of all
ESOP stock to common stock.
Page 3 of 3