EXHIBIT 11
CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES
Calculation of Primary Earnings (Loss) Per Common Share and
Fully Diluted Earnings (Loss) Per Common Share (unaudited)
(in thousands, except per share)
Nine Months Ended Three Months Ended
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September 30, September 30,
-------------------- --------------------
1995 1994 1995 1994
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Primary earnings (loss) per common share:
Net Income (Loss) $554,341 $(38,967) $235,583 $ 23,117
Dividends on Preference Shares 13,258 20,813 --- 6,938
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Net Income (Loss) Applicable to Common Stock $541,083 $(59,780) $235,583 $ 16,179
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Average number of common shares outstanding 94,213 92,990 95,568 93,046
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Per share $ 5.74 $ (.64) $ 2.47 $ .18
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Fully diluted earnings (loss) per common share:
Net Income (Loss) Applicable to Common Stock $541,083 $(59,780) $235,583 $ 16,179
Add income effect, assuming conversion of
dilutive convertible securities 15,106 --- --- ---
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Net income (loss) on a fully diluted basis $556,189 $(59,780) $235,583 $ 16,179
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Average number of common shares outstanding 94,213 92,990 95,568 93,046
Add common share effect, assuming conversion
of dilutive convertible securities 8,229 --- 1,057 ---
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Average number of common shares outstanding
on a fully diluted basis 102,442 92,990 96,625 93,046
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Per share $ 5.43 $ (.64) $ 2.44 $ .18
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NOTES:
(1) The computation of fully diluted earnings per common share assumes that the
average number of common shares outstanding during the period is increased
by the conversion of securities having a dilutive effect, and that net
income applicable to common stock is increased by dividends and after-tax
interest on such securities.
(2) Earnings per share was calculated for each three month and nine month period
on a stand-alone basis. On June 22, 1995 the company purchased all 7,894,737
shares of Common Stock that were issued on that date upon conversion of the
$92.50 Convertible Preference Stock, and on June 30, 1995 the company
purchased an additional 2,000,000 shares of Common Stock. In addition, on
June 27, 1995 the company called all $149,893,000 of its 6 1/2% Convertible
Subordinated Debentures due April 15, 2011 for redemption on August 8, 1995.
Virtually all of the Debentures were converted into an aggregate of
4,309,070 shares of common stock during the third quarter. As a result of
all of these transactions, the sum of the earnings per share for the first,
second and third quarters of 1995 does not equal the earnings per share for
the first nine months of 1995.
If the conversion of the 6 1/2% Convertible Subordinated Debentures had
occurred on the first day of each 1995 period presented, primary earnings
per share for the three months and nine months ended September 30, 1995
would have been $2.44 and $5.57, respectively.