1 EXHIBIT 11 CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS For the three month period ended June 30, 1997 (In thousands, except per share amounts) Primary Fully Diluted ------- ------------- Shares of common stock outstanding at April 1, 1997, less treasury stock 69,847 69,847 Plus net weighted shares of treasury stock purchased (624) (624) Plus common stock equivalents: Effect of convertible preferred stock conversion 6,018 Effect of equity incentive awards 888 965 ------- ------- Weighted average shares outstanding 70,111 76,206 ======= ======= Income applicable to common shares $27,937 $27,937 Dividends on preferred stock 813 Preferred stock conversion compensation shortfall (446) Earnings applicable to common shares $27,937 $28,304 ======= ======= Earnings per common share $ 0.40 $ 0.37 ======= ======= 2 EXHIBIT 11 CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS For the nine month period ended June 30, 1997 (In thousands, except per share amounts) Primary Fully Diluted ------- ------------- Shares of common stock outstanding at October 1, 1996 less treasury stock 71,589 71,589 Plus net weighted shares of treasury stock purchased (1,570) (1,570) Plus common stock equivalents: Effect of convertible preferred stock conversion 6,018 Effect of equity incentive awards 894 965 ------- ------- Weighted average shares outstanding 70,913 77,002 ======= ======= Income applicable to common shares $80,793 $80,793 Dividends on preferred stock 2,450 Preferred stock conversion compensation shortfall (1,349) Earnings applicable to common shares $80,793 $81,894 ======= ======= Earnings per common share $ 1.14 $ 1.06 ======= =======