1 EXHIBIT 11.2 - STATEMENT RE COMPUTATION OF PER SHARE EARNINGS FEDERAL-MOGUL CORPORATION AND SUBSIDIARIES FOR THE NINE MONTHS ENDED PRIMARY FULLY DILUTED -------------- --------------- SEPTEMBER 30 1997 1996 1997 1996 - ------------------------------------------ ------ ------ ------ ------ EARNINGS: (In Millions) Net earnings before extraordinary item $ 59.8 $ 14.5 $ 59.8 $ 14.5 Series C preferred dividend requirements (1.8) (1.9) (1.9) Series D preferred dividend requirements <F1> (3.1) (4.7) (4.7) Additional required ESOP contribution <F2> (1.4) ----- ----- ----- ----- Net earnings before extraordinary items, as adjusted 54.9 7.9 58.4 7.9 Extraordinary item - loss on early retirement of debt, net of applicable tax benefit 2.6 2.6 ----- ----- ----- ----- Net earnings available for common and equivalent shares $ 52.3 $ 7.9 $ 55.8 $ 7.9 ===== ===== ===== ===== WEIGHTED AVERAGE SHARES: (In Millions) Common shares outstanding 35.8 35.1 35.8 35.1 Dilutive stock options outstanding .2 .4 Conversion of Series C preferred stock <F3> 1.6 Conversion of Series D preferred stock <F4> 4.0 ----- ----- ----- ----- Common and equivalent shares outstanding 36.0 35.1 41.8 35.1 ===== ===== ===== ===== PER COMMON AND EQUIVALENT SHARE: Net earnings before extraordinary item $ 1.52 $ .23 $ 1.39 $ .23 Extraordinary item - loss on early retirement of debt, net of applicable tax benefit (.07) (.06) ----- ----- ----- ----- Net earnings $ 1.45 $ .23 $ 1.33 $ .23 ===== ===== ===== ===== [FN] <F1> In August 1997, the Series D preferred stock was converted into common stock and no dividend was paid for the three-month period ended September 30, 1997. <F2> Amount represents the additional after-tax contribution that would be necessary to meet the ESOP debt service requirements under an assumed conversion of the Series C preferred stock. <F3> Amount represents the weighted average number of common shares issued assuming conversion of preferred stock outstanding. <F4> Amount represents the weighted average number of common shares not included in the number of weighted-average common shares outstanding to reflect the 4.4 million shares converted. </FN>