Exhibit (11) STEPAN COMPANY STATEMENT RE COMPUTATION OF PER SHARE EARNINGS For the Three Months Ended March 31, 1998 and 1997 Unaudited (In Thousands, except per share amounts) Three Months Ended March 31 1998 1997 ---- ---- Computation of Basic Earnings per Share - ---------------------------------------- Net income $ 5,722 $ 4,477 Deduct dividends on preferred stock 224 267 ------- ------- Income applicable to common stock $ 5,498 $ 4,210 ======= ======= Weighted-average number of shares outstanding 9,846 9,839 Per share earnings* $ 0.558 $ 0.428 ======= ======= Computation of Diluted Earnings per Share - ----------------------------------------- Net income $ 5,722 $ 4,477 ======= ======= Weighted-average number of shares outstanding 9,846 9,839 Add net shares issuable from assumed exercise of options (under treasury stock method) 391 276 Add weighted-average shares issuable from assumed conversion of convertible preferred stock 746 887 ------- ------- Shares applicable to diluted earnings 10,983 11,002 ======= ======= Per share diluted earnings* $ 0.521 $ 0.407 ======= ======= ____________ * Rounded This calculation is submitted in accordance with Regulation S-K, item 601(b)(11).