1 EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE CHAPARRAL STEEL COMPANY AND SUBSIDIARIES Three months ended Six months ended November 30, November 30, 1994 1993 1994 1993 ------- ------- ------- ------- (In thousands except per share) AVERAGE SHARES OUTSTANDING Primary: Average shares outstanding 29,680 29,680 29,680 29,680 Stock options - treasury stock method using average market prices 31 29 32 32 ------- ------- ------- ------- TOTALS 29,711 29,709 29,712 29,712 ======= ======= ======= ======= Fully diluted: Average shares outstanding 29,680 29,680 29,680 29,680 Stock options - treasury stock method using end of quarter market price if higher than average 32 31 32 35 ------- ------- ------- ------- TOTALS 29,712 29,711 29,712 21,715 ======= ======= ======= ======= INCOME APPLICABLE TO COMMON STOCK Primary and fully diluted: Net income $ 4,969 $ 4,423 $ 6,722 $ 3,549 Add: Pre-September 1990 contingent price amortization 58 58 116 116 ------- ------- ------- ------- $ 5,027 $ 4,481 $ 6,838 $ 3,665 ======= ======= ======= ======= PER SHARE Net income per common share: Primary $ .17 $ .15 $ .23 $ .12 ======= ======= ======= ======= Fully diluted $ .17 $ .15 $ .23 $ .12 ======= ======= ======= ======= 12