EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE UNITED INDUSTRIAL CORPORATION AND SUBSIDIARIES Year ended December 31 1995 1994 1993 ---- ---- ---- Primary: Weighted average shares outstanding 12,169,408 12,237,468 12,258,693 Equivalent shares--dilutive stock options--based on treasury stock method using average market price 23,771 4,035 - ---------- ---------- ---------- 12,193,179 12,241,503 12,258,693 ========== ========== ========== Income (loss) before cumulative effect of accounting changes $888,000 $5,212,000 $(12,017,000) Cumulative effects 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) $ 888,000 $ 5,212,000 $(11,023,000) =========== =========== ============ Earnings (loss) per share: Earnings (loss) per share before cumulative effect of accounting changes for: $ .07 $ .43 $ (.98) Postretirement benefits other than pension - - (1.05) Income taxes - - 1.13 ----------- ----------- ------------ Earnings (loss) per share $ .07 $ .43 $ (.90) =========== =========== ============