1 EXHIBIT 11 CABOT CORPORATION Earnings per Common Share for the Year Ended September 30, 1996 Statement Re: Computation of Per Share Earnings (In thousands, except per share amounts) Primary (a) Fully Diluted (a) ----------- ----------------- Shares of common stock outstanding at October 1, 1995, less treasury stock 74,764 74,764 Plus net weighted shares of treasury stock purchased (2,744) (2,744) Plus common stock equivalents: Effect of convertible preferred stock conversion - 6,087 Effect of equity incentive awards 1,217 1,238 -------- -------- Weighted average shares outstanding 73,237 79,345 ======== ======== Income applicable to common shares $190,756 $190,756 Dividends on preferred stock - 3,301 Preferred stock conversion compensation shortfall - (2,061) -------- -------- Income applicable to common shares $190,756 $191,996 ======== ======== Earnings per common share $ 2.60 $ 2.42 ======== ======== (a) All common stock and equivalents reflect, as of the beginning of the fiscal year, the two-for-one stock split authorized on November 10, 1995 by the Board of Directors contingent upon shareholder approval of an amendment to the Company's Certificate of Incorporation. This amendment was approved on March 7, 1996.