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                                                                      EXHIBIT 11


                THE HALLWOOD GROUP INCORPORATED AND SUBSIDIARIES

             STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                  (UNAUDITED)



                                                             Five Months Ended        Two Months Ended
                                                                December 31,             December 31,   
                                                           --------------------     --------------------
                                                             1995         1994        1995         1994  
                                                           -------      -------     -------      -------
                                                                                     
PRIMARY:
Average common share outstanding  . . . . . . . . . . . .    1,331        1,372       1,328        1,372

Dilutive stock options based on the treasury stock method
  using the period end market price   . . . . . . . . . .       --           --          --           --
                                                           -------      -------     -------      -------

Average common and common share equivalents
  outstanding   . . . . . . . . . . . . . . . . . . . . .    1,331        1,372       1,328        1,372
                                                           =======      =======     =======      =======

Net loss  . . . . . . . . . . . . . . . . . . . . . . . .  $(3,265)     $(5,029)    $(1,566)     $(3,767)
                                                           =======      =======     =======      ======= 

Net loss per share  . . . . . . . . . . . . . . . . . . .  $ (2.45)     $ (3.67)    $ (1.18)     $ (2.75)
                                                           =======      =======     =======      ======= 

FULLY DILUTED:
Average common and common share equivalents
  outstanding - primary   . . . . . . . . . . . . . . . .    1,331        1,372       1,328        1,372
                                                           =======      =======     =======      ======= 

Net loss  . . . . . . . . . . . . . . . . . . . . . . . .  $(3,265)     $(5,029)    $(1,566)     $(3,767)
                                                           =======      =======     =======      ======= 

Net loss per share  . . . . . . . . . . . . . . . . . . .  $ (2.45)     $ (3.67)    $ (1.18)     $ (2.75)
                                                           =======      =======     =======      =======