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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)



                                                             SIX MONTHS ENDED        THREE MONTHS ENDED
                                                                 JUNE 30,                 JUNE 30,     
                                                           --------------------      -------------------
                                                             1996         1995        1996        1995
                                                           -------      -------      ------     --------
                                                                                    
PRIMARY:
Average common share outstanding  . . . . . . . . . . . .    1,326        1,370       1,325        1,367

Dilutive stock options based on the treasury stock method
  using the period end market price   . . . . . . . . . .        2           --           2           --
                                                           -------      -------      ------     --------

Average common and common share equivalents
  outstanding   . . . . . . . . . . . . . . . . . . . . .    1,328        1,370       1,327        1,367
                                                           =======      =======      ======     ========

Net income  . . . . . . . . . . . . . . . . . . . . . . .  $ 2,704      $ 1,519     $ 2,396     $     86
                                                           =======      =======      ======     ========

Net income per share  . . . . . . . . . . . . . . . . . .  $  2.04      $  1.11     $  1.81     $   0.06
                                                           =======      =======      ======     ========

FULLY DILUTED:
Average common and common share equivalents
  outstanding - primary   . . . . . . . . . . . . . . . .    1,328        1,370       1,327        1,367
                                                           =======      =======      ======     ========

Net income  . . . . . . . . . . . . . . . . . . . . . . .  $ 2,704      $ 1,519     $ 2,396     $     86
                                                           =======      =======      ======     ========

Net income per share  . . . . . . . . . . . . . . . . . .  $  2.04      $  1.11     $  1.81     $   0.06
                                                           =======      =======      ======     ========