Exhibit 11
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Per Share Earnings (Unaudited)
In 1997, the company adopted Statement of Financial Accounting Standards No.
128, "Earnings per Share," which specifies the methods for computing earnings
per share. The calculation of earnings per share according to the provisions of
this statement did not have an impact on the previously reported earnings per
share amounts. Basic earnings per share are computed by dividing net income less
the ESOP preferred stock dividend requirement (to the date of its redemption in
1996), and the redemption adjustment (excess of fair value over book value of
ESOP shares redeemed), and in 1995 the Series A stock dividend requirement by
the weighted average number of common shares outstanding. In Decemner 1996, the
company redeemed the ESOP preferred stock with shares of common stock of
equivalent value. On March 1, 1995, the Series A stock was converted on a one-
for-one basis into common stock. Diluted earnings per share reflect the dilutive
effect of stock options and assume the conversion of outstanding ESOP preferred
stock, until its redemption in December 1996, into an equivalent number of
common shares at the date of issuance. In addition, diluted earnings per share
reflect an equivalent number of common shares for the Series A Stock until its
conversion on March 1, 1995. Net Income was reduced by an additional ESOP
contribution (differential between the common and the ESOP preferred dividend
rates under an assumed conversion) necessary to satisfy the debt service
requirement.
Years Ended December 31
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1997 1996 1995
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Basic earnings per share ($ in millions except per share data)
Basic earnings:
Continuing operations:
Income from continuing operations $ 153 $ 288 $ 134
Less preferred dividends:
ESOP net of tax benefit - (4) (6)
Series A - - (3)
Redemption adjustment - (8) -
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$ 153 $ 276 $ 125
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Discontinued operations:
Income (loss) from discontinued operations $ - $ (8) $ 6
Less redemption adjustment - (1) -
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$ - $ (9) $ 6
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Basic shares: (in thousands)
Weighted average shares outstanding 50,519 49,992 47,592
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Basic earnings (loss) per share:
Continuing operations $ 3.02 $ 5,52 $ 2.63
Discontinued operations - (0.18) 0.12
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$ 3.02 $ 5.34 $ 2.75
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Diluted earnings per share
Diluted earnings:
Income from continuing operations $ 153 $ 288 $ 134
Less additional ESOP contribution - (4) (3)
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$ 153 $ 284 $ 131
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Income (loss) from discontinued operations $ - $ (8) $ 6
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Diluted shares: (in thousands)
Basic shares 50,519 49,992 47,592
Assumed conversion of:
ESOP preferred stock - 1,950 2,262
Series A preferred stock - - 1,274
Stock options and remuneration agreements 368 369 164
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50,887 52,311 51,292
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Diluted earnings (loss) per share:
Continuing operations $ 3.00 $ 5.43 $ 2.56
Discontinued operations - (0.16) 0.11
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$ 3.00 $ 5.27 $ 2.67
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