1 Exhibit 11 TRW Inc. and Subsidiaries ------------------------- COMPUTATION OF EARNINGS PER SHARE - UNAUDITED --------------------------------------------- (In Millions Except Per Share Amounts) Three Months Ended March 31 ---------------------------- PRIMARY 1997 1996 - ------- ----- ---- Earnings from continuing operations $119.2 $102.7 Less preference dividend requirements 0.1 0.1 ------- ------- Earnings applicable to common shares and common share equivalents 119.1 102.6 Earnings from discontinued operations -- 14.3 ------- ------- Net earnings applicable to common shares and common share equivalents $119.1 $116.9 ======= ======= Average common shares outstanding 125.2 131.2 Stock options and performance share rights, based on the treasury stock method using average market price 3.2 3.0 ------- ------- Average common shares and common share equivalents 128.4 134.2 ======= ======= Primary earnings per share from continuing operations $0.93 $0.76 Primary earnings per share from discontinued operations -- 0.11 ------- ------- Primary earnings per share $0.93 $0.87 ======= ======= FULLY DILUTED - ------------- Earnings from continuing operations applicable to common shares and common share equivalents $119.1 $102.6 Dividends assuming conversion of other dilutive securities: (A) Dilutive preference dividends 0.1 0.1 ------- ------- Earnings from continuing operations applicable to fully diluted shares 119.2 102.7 Earnings from discontinued operations -- 14.3 ------- ------- Net earnings applicable to fully diluted shares $119.2 $117.0 ======= ======= Average common shares outstanding 125.2 131.2 Common shares assuming conversion of other dilutive securities: (A) Dilutive preference shares 1.0 1.1 Stock options and performance share rights, based on the treasury stock method using closing market price if higher than average market price 3.2 3.3 ------- ------- Average fully diluted shares 129.4 135.6 ======= ======= Fully diluted earnings per share from continuing operations $0.92 $0.76 Fully diluted earnings per share from discontinued operations -- 0.10 ------- ------- Fully diluted earnings per share $0.92 $0.86 ======= ======= <FN> (A) Assuming the conversion of the Serial Preference Stock II - Series 1 and Series 3.