Exhibit 11 ---------- CONRAIL INC. ------------ EARNINGS PER SHARE COMPUTATIONS ------------------------------- [CAPTION] ($ In Millions Except Per Share) Quarters Ended Six Months Ended June 30, June 30, ------------------ ------------------ 1996 1995 1996 1995 ---- ---- ---- ---- Net income - ---------- Primary Net income $ 26 $123 $ 57 $178 Dividends declared on Series A ESOP convertible junior preferred stock (ESOP Stock), net of tax benefit (3) (4) (6) (7) ---- ---- ---- ---- $ 23 $119 $ 51 $171 ==== ==== ==== ==== Fully diluted Net income 26 123 57 178 Nondiscretionary adjustment (1) (1) (1) (2) ---- ---- ---- ---- $ 26 $122 $ 56 $176 ==== ==== ==== ==== Weighted average number of shares (2) - --------------------------------- Primary Weighted average number of common shares outstanding 76,833,596 78,258,484 77,059,915 78,427,633 Effect of shares issuable under employee stock compensation plans 651,031 451,532 687,738 475,729 ---------- ---------- ---------- ---------- 77,484,627 78,710,016 77,747,653 78,903,362 ========== ========== ========== ========== Fully diluted Weighted average number of common shares outstanding 76,833,596 78,258,484 77,059,915 78,427,633 Series A ESOP convertible junior preferred stock 9,745,435 9,806,989 9,750,952 9,814,132 Effect of shares issuable under employee stock compensation plans 651,031 503,103 687,738 522,785 ---------- ---------- ---------- ---------- 87,230,062 88,568,576 87,498,605 88,764,550 ========== ========== ========== ========== Net income per common share Primary $ .30 $1.52 $ .66 $2.17 Fully diluted .29 1.37 .64 1.98 Page 1 of 2 Exhibit 11 ---------- CONRAIL INC. ------------ EARNINGS PER SHARE COMPUTATIONS ------------------------------- Notes: 1. Represents the increase, net of income tax benefits, in ESOP-related expenses assuming conversion of all ESOP Stock to common stock. 2. Shares held by the Employee Benefits Trust (the "Trust") are not considered outstanding for earnings per share computations until issued by the Trust. Page 2 of 2