1 EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE CHAPARRAL STEEL COMPANY AND SUBSIDIARIES Three months ended Six months ended November 30, November 30, 1995 1994 1995 1994 ---- ---- ---- ---- (In thousands except per share) AVERAGE SHARES OUTSTANDING Primary: Average shares outstanding 29,587 29,680 29,634 29,680 Stock options - treasury stock method using average market prices 162 31 143 32 -------- --------- -------- --------- TOTALS 29,749 29,711 29,777 29,712 ======== ========= ======== ========= Fully diluted: Average shares outstanding 29,587 29,680 29,634 29,680 Stock options - treasury stock method using end of quarter market price if higher than average 214 32 188 32 -------- --------- -------- --------- TOTALS 29,801 29,712 29,822 29,712 ======== ========= ======== ========= INCOME APPLICABLE TO COMMON STOCK Primary and fully diluted: Net income $ 10,486 $ 4,969 $ 16,913 $ 6,722 Add: Pre-September 1990 contingent price amortization 58 58 116 116 -------- --------- -------- --------- $ 10,544 $ 5,027 $ 17,029 $ 6,838 ======== ========= ======== ========= PER SHARE Net income per common share: Primary $ .35 $ .17 $ .57 $ .23 ======== ======== ======== ========= Fully diluted $ .35 $ .17 $ .57 $ .23 ======== ======== ======== ========= 12