EXHIBIT 11 Computation of Earnings Per Share United Industrial Corporation and Subsidiaries Year Ended December 31 1994 1993 1992 ---- ---- ---- Primary: Weighted average shares outstanding 12,237,468 12,258,693 12,257,850 Equivalent shares-dilutive stock options-based on treasury stock method using average market price 4,035 - (A) ----------- ------------ ------------ 12,241,503 12,258,693 12,257,850 =========== ============ ============ Income (loss) before cumulative effect of accounting changes $ 5,212,000 $(12,017,000) $ 6,393,000 Cumulative effect as of January 1, 1993 of changes in method of accounting for: Postretirement benefits other than pensions, net of taxes - (12,890,000) - Income taxes - 13,884,000 - ----------- ------------ ------------ Net income (loss) $ 5,212,000 $(11,023,000) $ 6,393,000 =========== ============ ============ Earnings (loss) per share Earnings (loss) per share before cumulative effect of accounting changes for: $ .43 $ (.98) $ .52 Postretirement benefits other than pensions - (1.05) - Income taxes - 1.13 - ----------- ------------ ------------ Earnings (loss) per share $ .43 $ (.90) $ .52 =========== ============ ============ (A) The effect of equivalent shares of dilutive stock options is not significant to earnings per share. There is no significant difference between primary and fully diluted earnings per share. NYFS11...:\95\78495\0001\1196\EXH3285X.150