EXHIBIT 11 CHAMPION INTERNATIONAL CORPORATION AND SUBSIDIARIES Calculation of Basic Earnings (Loss) Per Common Share and Diluted Earnings (Loss) Per Common Share (unaudited) (in millions, except per share) Six Months Ended Three Months Ended ---------------------------------- ---------------------------------- June 30, June 30, ---------------------------------- ---------------------------------- 1998 1997 1998 1997 --------------- --------------- --------------- --------------- Basic earnings (loss) per common share: Net income (loss) applicable to common stock $ 51.1 $ (48.4) $ 32.1 $ (11.3) =============== =============== =============== =============== Average number of common shares outstanding 96.2 95.6 96.2 95.7 =============== =============== =============== =============== Basic earnings (loss) per share $ .53 $ (.51) $ .33 $ (.12) =============== =============== =============== =============== Diluted earnings (loss) per common share: (1) Net income (loss) applicable to common stock $ 51.1 $ (48.4) $ 32.1 $ (11.3) Add income effect, assuming conversion of potentially dilutive securities --- --- --- --- --------------- --------------- --------------- --------------- Net income (loss) on a diluted basis $ 51.1 $ (48.4) $ 32.1 $ (11.3) =============== =============== =============== =============== Average number of common shares outstanding 96.2 95.6 96.2 95.7 Add common share effect, assuming conversion of potentially dilutive securities .8 --- .8 --- --------------- --------------- --------------- --------------- Average number of common shares outstanding on a diluted basis 97.0 95.6 97.0 95.7 =============== =============== =============== =============== Diluted earnings (loss) per share $ .53 $ (.51) $ .33 $ (.12) =============== =============== =============== =============== - ------------------------------- NOTE: (1) The computation of diluted earnings per share assumes that the average number of common shares outstanding during the period is increased by dilutive common share equivalents and 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.