EXHIBIT 11 COMPUTATION OF EARNINGS PER SHARE UNITED INDUSTRIAL CORPORATION AND SUBSIDIARIES Year ended December 31, 1998 1997 1996 ---- ---- ---- Net income $13,011,000 $14,825,000 $6,404,000 ============ ============== ============== Basic: Weighted average shares 12,306,763 12,194,885 12,172,697 Dilutive stock options--based on treasury stock method using average market price 302,076 225,236 38,376 ------------ -------------- -------------- Dilutive potential Common Shares 12,608,839 12,420,121 12,211,073 ============ ============== ============== Earnings per share: Basic $ 1.06 $ 1.22 $ .53 ======== ======== ======= Diluted $ 1.03 $ 1.19 $ .52 ======== ======== =======