1 EXHIBIT 11 NACCO INDUSTRIES, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE YEAR ENDED DECEMBER 31, 1996 1995 1994 ---- ---- ---- (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) INCOME: Income before extraordinary items $50,577 $65,506 $45,272 Extraordinary gain, net-of-tax -- 32,333 -- Extraordinary charges, net-of-tax -- (3,399) (3,218) ------- ------- ------- Net income $50,577 $94,440 $42,054 ======= ======= ======= PER SHARE AMOUNTS REPORTED TO STOCKHOLDERS -- Note 1 Income before extraordinary items $ 5.67 $ 7.31 $ 5.06 Extraordinary gain, net-of-tax -- 3.61 -- Extraordinary charges, net-of-tax -- (.38) (.36) ------- ------- ------- Net income $ 5.67 $ 10.54 $ 4.70 ======= ======= ======= PRIMARY: Weighted average shares outstanding 8,920 8,963 8,948 Dilutive stock options -- Note 2 11 12 12 ------- ------- ------- Totals 8,931 8,975 8,960 ======= ======= ======= Per share amounts Income before extraordinary items $ 5.66 $ 7.30 $ 5.05 Extraordinary gain, net-of-tax -- 3.60 -- Extraordinary charges, net-of-tax -- (.38) (.35) ------- ------- ------- Net income $ 5.66 $ 10.52 $ 4.70 ======= ======= ======= FULLY DILUTED: Weighted average shares outstanding 8,920 8,963 8,948 Dilutive stock options -- Note 2 11 12 9 ------- ------- ------- Totals 8,931 8,975 8,957 ======= ======= ======= Per share amounts Income before extraordinary items $ 5.66 $ 7.30 $ 5.05 Extraordinary gain, net-of-tax -- 3.60 -- Extraordinary charges, net-of-tax -- (.38) (.35) ------- ------- ------- Net income $ 5.66 $ 10.52 $ 4.70 ======= ======= ======= Note 1-- Per share earnings have been computed and reported to the stockholders pursuant to APB Opinion No. 15, which provides that "any reduction of less than 3% in the aggregate need not be considered as dilution in the computation and presentation of earnings per share data." Note 2-- Dilutive stock options are calculated based on the treasury stock method. For primary per share earnings the average market price is used. For fully diluted per share earnings the year-end market price, if higher than the average market price, is used.