EXHIBIT 11 PAGE 1 OF 2 COLGATE-PALMOLIVE COMPANY COMPUTATION OF EARNINGS PER COMMON SHARE DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS (UNAUDITED) - -------------------------------------------------------------------------------- THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------- ------------- PRIMARY 1996 1995 1996 1995 ---- ---- ---- ---- EARNINGS: Net income (loss) $ 160.9 $(250.2) $ 453.3 $ 49.5 Deduct: Dividends on preferred shares, net of income taxes 5.3 5.4 16.1 16.2 -------- -------- -------- -------- Net income (loss) applicable to common shares $ 155.6 $(255.6) $ 437.2 $ 33.3 -------- -------- -------- -------- -------- -------- -------- -------- SHARES (IN MILLIONS): Weighted average common shares outstanding 146.8 145.5 146.4 145.0 -------- -------- -------- -------- -------- -------- -------- -------- Earnings (loss) per common share, primary $ 1.06 $ (1.76) $ 2.99 $ .23 -------- -------- -------- -------- -------- -------- -------- -------- EXHIBIT 11 PAGE 2 OF 2 COLGATE-PALMOLIVE COMPANY COMPUTATION OF EARNINGS PER COMMON SHARE DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS (UNAUDITED) - -------------------------------------------------------------------------------- THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------- ------------- ASSUMING FULL DILUTION 1996 1995 1996 1995 ---- ---- ---- ---- EARNINGS: Net income (loss) $ 160.9 $(250.2) $ 453.3 $ 49.5 Deduct: Dividends on preferred shares .1 5.4 .4 16.2 Replacement funding resulting from assumed conversion of Series B Convertible Preference Stock, net of tax 1.2 - 3.7 - ------- ------- ------- ------- Net income (loss) applicable to common shares $ 159.6 $(255.6) $ 449.2 $ 33.3 ------- ------- ------- ------- ------- ------- ------- ------- SHARES (IN MILLIONS): Weighted average number of common shares outstanding 146.8 145.5 146.4 145.0 Assumed conversion of options reduced by the number of shares which could have been purchased with the proceeds from the exercise of such options 2.6 - 2.7 2.2 Assumed conversion of Series B Convertible Preference Stock 11.7 - 11.7 - ------- ------- ------- ------- Weighted average number of common shares outstanding, as adjusted 161.1 145.5 160.8 147.2 ------- ------- ------- ------- ------- ------- ------- ------- Earnings (loss) per common share, assuming full dilution $ .99 $ (1.76) $ 2.79 $ .23 ------- ------- ------- ------- ------- ------- ------- ------- The calculation of fully diluted earnings per share excludes the effect of anti- dilutive securities for the third quarter and the nine months of 1995, respectively.