Exhibit 11


                               FARREL CORPORATION
                 STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
                 (In thousands, except per share and share data)

<TABLE>
<CAPTION>
                                                               Three Months Ended                  Nine months Ended
                                                         ----------------------------         ----------------------------
                                                         Sept. 28,         Sept. 29,          Sept. 28,         Sept. 29,
                                                            2003              2002               2003              2002
                                                         ----------        ----------         ----------        ----------
<S>                                                      <C>               <C>                <C>               <C>
Net income (loss) applicable to common stock             $     (114)       $      348         $   (1,223)       $     (879)
                                                         ==========        ==========         ==========        ==========
Weighted average number of common
shares outstanding -  Basic earnings per share            5,235,128         5,228,461          5,234,035         5,228,461

Effect of dilutive stock and purchase  options                   --            48,402                 --                --
                                                         ----------        ----------         ----------        ----------

Weighted average number of common
shares outstanding - Diluted earnings per share           5,235,128         5,276,863          5,234,035         5,228,461
                                                         ==========        ==========         ==========        ==========

Net earnings (loss) per common
  share - Basic                                          $    (0.02)       $     0.07         $    (0.23)       $    (0.17)
                                                         ==========        ==========         ==========        ==========
  share - Fully diluted                                  $    (0.02)       $     0.07         $    (0.23)       $    (0.17)
                                                         ==========        ==========         ==========        ==========
</TABLE>

Options outstanding at September 28, 2003, to purchase 237,000 shares of common
stock at prices ranging from $2 to $6 were not included in the computation of
dilutive EPS for the three and nine month periods ending September 28, 2003,
because the options' exercise prices were greater than the average market price
of the common shares. Options outstanding at September 28, 2003, to purchase
95,000 shares of common stock at prices ranging from $0.60 to $0.88 were not
included in the computation of dilutive EPS for the three and nine month periods
ending September 28, 2003, because the effect of the options was anti-dilutive.

Options outstanding at September 29, 2002, to purchase 283,000 shares of common
stock at prices ranging from $2 to $6.75 were not included in the computation of
dilutive EPS for the three and nine month periods ending September 29, 2002,
because the options' exercise prices were greater than the average market price
of the common shares. Options outstanding at September 29, 2002, to purchase
90,000 shares of common stock at prices ranging from $0.60 to $0.81 were not
included in the computation of dilutive EPS for the nine month period ending
September 29, 2002, because the effect of the options was anti-dilutive.