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EXHIBIT 11.1
DETROIT DIESEL CORPORATION
STATEMENT OF COMPUTATION OF PER SHARE EARNINGS
December 31, December 31, December 31,
1997 1996 1995
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Basic net income per share:
Net income $ 29,914,000 $ 3,846,000 $ 40,062,000
Weighted average number of
shares outstanding 24,698,402 24,697,316 24,676,696
================= ================== ==================
Basic net income per share $1.21 $0.16 $1.62
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Diluted net income per share:
Net income $ 29,914,000 $ 3,846,000 $ 40,062,000
Weighted average number of
shares outstanding 24,698,402 24,697,316 24,676,696
Dilutive effect of stock
options 81,379(1) 344(2) 16,722(3)
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Weighted average number of
shares 24,779,781 24,697,660 24,693,418
================= ================== ==================
Diluted net income per share $1.21 $0.16 $1.62
================= ================== ==================
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(1) Represents the weighted average dilutive effect of 297,750 and 265,500,
stock options exercisable at $20.00 and $17.00, per share, respectively,
calculated using the treasury stock method.
(2) Represents the weighted average dilutive effect of 5,000 stock options
exercisable at $18.00 per share, respectively, calculated using the
treasury stock method.
(3) Represents the weighted average dilutive effect of 339,070 stock options
exercisable at $20.00 per share, respectively, calculated using the
treasury stock method.
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