1 EXHIBIT 11 KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES COMPUTATION OF EARNINGS (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE (In millions of dollars, except per share amounts) Year Ended December 31, ------------------------------------ 1996 1995 1994 -------- --------- -------- Primary: Earnings: Income (loss) before extraordinary loss and cumulative effect of changes in accounting principles $ 8.2 $ 60.3 $ (101.4) Dividends on preferred stock: Series A Shares (9.1) (12.6) PRIDES (8.4) (8.5) (7.5) -------- --------- -------- Income (loss) available to common shareholders before extraordinary loss (0.2) 42.7 (121.5) Extraordinary loss - net (5.4) -------- --------- -------- Net income (loss) available to common shareholders $ (.2) $ 42.7 $ (126.9) ======== ========= ======== Shares (000): Weighted average common shares outstanding 71,644 58,267 58,139 Weighted average shares arising from redemption of Series A Shares 3,705 Weighted average shares arising from conversion of PRIDES 29 Assuming exercise of nonqualified stock options 263 -------- --------- -------- Weighted average common and common equivalent shares 71,644 62,264 58,139 ======== ========= ======== Primary earnings (loss) per common and common equivalent share: Income (loss) before extraordinary loss and cumulative effect of changes in accounting principles $ .00 $ .69 $ (2.09) Extraordinary loss (.09) -------- --------- -------- Net income (loss) $ .00 $ .69 $ (2.18) ======== ========= ======== Fully diluted:(1) Earnings: Income before extraordinary loss $ 60.3 Dividends on PRIDES (8.5) --------- Net income available to common and common equivalent shareholders $ 51.8 ========= Shares (000): Weighted average common shares outstanding 58,267 Additional shares arising from redemption of Series A Shares 13,127 Additional shares arising from conversion of PRIDES 151 Assuming exercise of nonqualified stock options 264 --------- Weighted average common and common equivalent shares 71,809 ========= ========= Fully diluted earnings per common and common equivalent share $ .72 ========= (1) As a result of the redemption of the Series A Shares and conversion of 181,700 shares of PRIDES during the 1995 period, fully diluted earnings per share are presented for such period, even though the result is antidilutive. For the 1996 and 1994 periods, common equivalent shares attributable to the preferred stock and non-qualified stock options were excluded from the calculation of weighted average shares because they were antidilutive.