1 EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE CHAPARRAL STEEL COMPANY AND SUBSIDIARIES Three months ended August 31, 1997 1996 ---- ---- (In thousands except per share) AVERAGE SHARES OUTSTANDING Primary: Average shares outstanding 28,449 28,563 Stock options - treasury stock method using average market prices 401 341 -------- -------- TOTALS 28,850 28,904 ======== ======== Fully diluted: Average shares outstanding 28,449 28,563 Stock options - treasury stock method using end of quarter market price if higher than average 449 342 -------- ------- TOTALS 28,898 28,905 ======== ======== INCOME APPLICABLE TO COMMON STOCK Primary and fully diluted: Net income $ 9,330 $ 8,314 Add: Pre-September 1990 contingent price amortization 58 58 -------- -------- $ 9,388 $ 8,372 ======== ======== PER SHARE Net income per common share: Primary $ .33 $ .29 ======== ======== Fully diluted $ .33 $ .29 ======== ========