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 Six Months Ended June 30 June 30 ------------------ ----------------- 1999 1998 1999 1998 ---- ---- ---- ---- Net income $ 1,424,000 $ 2,298,000 $ 3,738,000 $ 4,621,000 =========== =========== =========== =========== Basic earnings per share: Weighted average shares 12,270,713 12,325,530 12,264,713 12,289,947 =========== =========== =========== =========== Effect of dilutive securities: Employee and non-employee director stock options 337,416 338,837 281,857 388,980 =========== =========== =========== =========== Diluted earnings per share: Adjusted weighted-average and assumed conversions 12,608,129 12,664,367 12,546,570 12,678,927 =========== =========== =========== =========== Basic earnings per share $ .12 $ .19 $ .30 $ .38 =========== =========== =========== =========== Diluted earnings per share $ .11 $ .18 $ .30 $ .36 =========== =========== =========== =========== - -------------------------------------------------------------------------------- 15