1


                                                                      EXHIBIT 11


                THE HALLWOOD GROUP INCORPORATED AND SUBSIDIARIES

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



                                                                THREE MONTHS ENDED 
                                                                     MARCH 31,     
                                                                -------------------
                                                                  1996        1995 
                                                                --------     ------
                                                                            
PRIMARY:                                                                             
Average common share outstanding  . . . . . . . . . . . .         1,326        1,372 
                                                                                     
Dilutive stock options based on the treasury stock method                            
  using the period end market price   . . . . . . . . . .             2           -- 
                                                                 ------      ------- 
                                                                                     
Average common and common share equivalents                                          
  outstanding   . . . . . . . . . . . . . . . . . . . . .         1,328        1,372 
                                                                 ======      ======= 
                                                                                     
Net income  . . . . . . . . . . . . . . . . . . . . . . .       $   308     $  1,433 
                                                                 ======      ======= 
                                                                                     
Net income per share  . . . . . . . . . . . . . . . . . .       $  0.23     $   1.04 
                                                                 ======      ======= 
                                                                                     
FULLY DILUTED:                                                                       
Average common and common share equivalents                                          
  outstanding - primary   . . . . . . . . . . . . . . . .         1,328        1,372 
                                                                 ======      ======= 
                                                                                     
Net income  . . . . . . . . . . . . . . . . . . . . . . .       $   308     $  1,433 
                                                                 ======      ======= 
                                                                                     
Net income per share  . . . . . . . . . . . . . . . . . .       $  0.23     $   1.04 
                                                                 ======      =======