EXHIBIT 11 - Computation of Earnings Per Share Item 6(a) Exhibit 11 Computation of Earnings per Share United Industrial Corporation and Subsidiaries Three Months Ended Nine Months Ended September 30 September 30 ------------------ ----------------- 1998 1997 1998 1997 ---- ---- ---- ---- Net income $2,361,000 $6,678,000 $6,982,000 $10,111,000 ========== ========== ========== =========== Basic earnings per share: Weighted average shares 12,369,381 12,181,843 12,316,425 12,177,743 ========== ========== ========== ========== Effect of dilutive securities: Employee and non-employee director stock options 295,832 263,271 326,404 263,271 ======= ======= ======= ======= Diluted earnings per share: Adjusted weighted-average and assumed conversions 12,665,213 12,445,114 12,642,829 12,366,374 ========== ========== ========== ========== Basic earnings per share $ .19 $ .55 $ .57 $ .83 ====== ====== ====== ====== Diluted earnings per share $ .19 $ .54 $ .55 $ .82 ====== ====== ====== ====== 13