Exhibit 11
CONRAIL INC.
EARNINGS PER SHARE COMPUTATIONS
($ Millions Except Per Share)
Quarters Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
---- ---- ---- ----
Net income
Primary
Net income $ 138 $ 116 $ 195 $ 294
Dividends declared on
Series A ESOP convertible
junior preferred stock
(ESOP Stock), net of tax
benefit (4) (2) (10) (9)
---------- ---------- ----------- ----------
$ 134 $ 114 $ 185 $ 285
========== ========== =========== ==========
Fully diluted
Net income 138 116 195 294
Nondiscretionary (1) (1) (2) (3)
adjustment(1) ---------- ---------- ----------- ----------
$ 137 $ 115 $ 193 $ 291
========== ========== =========== ==========
Weighted average number of
shares (2)
Primary
Weighted average number
of common shares
outstanding 76,233,398 78,035,787 76,782,398 78,295,582
Effect of shares issuable
under employee stock
compensation plans 592,039 628,223 660,944 541,007
---------- ---------- ---------- ----------
76,825,437 78,664,010 77,443,342 78,836,589
========== ========== ========== ==========
Fully diluted
Weighted average number
of common shares
outstanding 76,233,398 78,035,787 76,782,398 78,295,582
Series A ESOP
convertible junior
preferred stock 9,588,858 9,793,741 9,696,527 9,807,260
Effect of shares
issuable under
employee stock
compensation plans 667,113 695,858 715,143 749,716
---------- ---------- ---------- ----------
86,489,369 88,525,386 87,194,068 88,852,558
========== ========== ========== ==========
Net income per common share
Primary $1.74 $1.44 $2.39 $3.61
Fully diluted 1.58 1.31 2.21 3.28
Exhibit 11
CONRAIL, INC.
EARNINGS PER SHARE COMPUTATIONS
Notes: 1. Represents the increase, net of income tax
benefits, in ESOP-related expenses assuming
conversion of all ESOP Stock to common stock.
2. Shares held by the Employee Benefits Trust (the
"Trust") are not considered outstanding for
earnings per share computations until issued by
the Trust.