<PAGE>
<TABLE>
                                                                    EXHIBIT 11
                      ARMCO INC. AND CONSOLIDATED SUBSIDIARIES
                       COMPUTATION OF INCOME (LOSS) PER SHARE
                  (Dollars in Millions, Except Per Share Amounts)

<CAPTION>
                                                Year Ended December 31
                                   -------------------------------------------
                                    1995     1994     1993     1992     1991
                                   ------   ------   ------   ------   ------
I. PRIMARY
<S>                               <C>      <C>      <C>      <C>      <C>
   Income (loss) from continuing 
     operations.................. $  23.5  $  65.8  $(247.5) $(402.2) $(147.2)
   Less:  preferred dividends....    17.9     17.8     17.8     10.3      8.1 
                                  -------- -------- -------- -------- --------
   Income (loss) from continuing 
     operations after preferred 
     dividends................... $   5.6  $  48.0  $(265.3) $(412.5) $(155.3)
                                  ======== ======== ======== ======== ========
   Income (loss) before extra-
     ordinary items and cumulative 
     effect of changes in accoun-
     ting principles............. $  29.8  $  77.7  $(327.0) $(421.5) $(336.5)
   Less:  preferred dividends....    17.9     17.8     17.8     10.3      8.1 
                                  -------- -------- -------- -------- --------
   Income (loss) before extra-
     ordinary items and cumulative 
     effect of changes in accoun-
     ting principles after 
     preferred dividends......... $  11.9  $  59.9  $(344.8) $(431.8) $(344.6)
                                  ======== ======== ======== ======== ========
   Income (loss) before extra-
     ordinary items and cumulative 
     effect of changes in accoun-
     ting principles...... ...... $  29.8  $  77.7  $(327.0) $(421.5) $(336.5)
       Loss on extraordinary items    --       --      (7.3)    (8.4)     --  
       Cumulative effect of changes 
       in accounting principles..     --       --    (307.5)     --       --  
                                  -------- -------- -------- -------- --------
   Net income (loss)............. $  29.8  $  77.7  $(641.8) $(429.9) $(336.5)
     Less preferred dividends....    17.9     17.8     17.8     10.3      8.1 
                                  -------- -------- -------- -------- --------
     Net income (loss) after 
     preferred dividends......... $  11.9  $  59.9  $(659.6) $(440.2) $(344.6)
                                  ======== ======== ======== ======== ========
   Weighted average number of 
     common shares                  106.0	   104.6    103.8     98.8     88.5
   Weighted average number of 
     common equivalent shares (A)     --       0.1      *        *        * 
                                  -------- -------- -------- -------- --------
   Total shares for computation     106.0    104.7    103.8     98.8     88.5
                                  ======== ======== ======== ======== ========
   Primary income (loss) per share:
     Income (loss) from continuing 
     operations.................. $  0.05  $  0.46  $ (2.56) $ (4.18) $ (1.75)
     Income (loss) before extra-
       ordinary items and 
       cumulative effect of 
       changes in accounting 
       principles................    0.11     0.57    (3.32)   (4.37)   (3.89)
     Loss on extraordinary items.     --       --     (0.07)   (0.08)     --
     Cumulative effect of changes 
       in accounting principles..     --       --     (2.96)    --        --  
     Net income (loss)...........    0.11     0.57    (6.35)   (4.45)   (3.89)
<PAGE>


                                                                    EXHIBIT 11
                    ARMCO INC. AND CONSOLIDATED SUBSIDIARIES
               COMPUTATION OF INCOME (LOSS) PER SHARE (Continued)
                 (Dollars in Millions, Except Per Share Amounts)

<CAPTION>
                                                Year Ended December 31
                                   -------------------------------------------
                                    1995     1994     1993     1992     1991
                                   ------   ------   ------   ------   ------
II. FULLY DILUTED
<S>                               <C>      <C>      <C>      <C>      <C>
   Income (loss) from continuing 
     operations.................. $  23.5  $  65.8  $(247.5) $(402.2) $(147.2)
   Less:  preferred dividends....     --       --      17.8     10.3      8.1 
                                  -------- -------- -------- -------- --------
   Income (loss) from continuing 
     operations after preferred 
     dividends................... $  23.5  $  65.8  $(265.3) $(412.5) $(155.3)
                                  ======== ======== ======== ======== ========
   Income (loss) before extra-
     ordinary items and cumulative 
     effect of changes in accounting 
     principles.................. $  29.8  $  77.7  $(327.0) $(421.5) $(336.5)
   Less:  preferred dividends....     --       --      17.8     10.3      8.1 
                                  -------- -------- -------- -------- --------
   Income (loss) before extra-
     ordinary items and cumulative 
     effect of changes in 
     accounting principles after 
     preferred dividends......... $  29.8  $  77.7  $(344.8) $(431.8) $(344.6)
                                  ======== ======== ======== ======== ========
   Income (loss) before extra-
     ordinary items and cumulative 
     effect of changes in accounting
     principles.................. $  29.8  $  77.7  $(327.0) $(421.5) $(336.5)
       Loss on extraordinary items    --       --      (7.3)    (8.4)     --  
       Cumulative effect of changes 
       in accounting principles..     --       --    (307.5)     --       --  
                                  -------- -------- -------- -------- --------
   Net income (loss)............. $  29.8  $  77.7  $(641.8) $(429.9) $(336.5)
    Less preferred dividends.....     --       --      17.8     10.3      8.1 
                                  -------- -------- -------- -------- --------
     Net income (loss) after 
       preferred dividends....... $  29.8  $  77.7  $(659.6) $(440.2) $(344.6)
                                  ======== ======== ======== ======== ========
   Weighted average number of 
     common shares...............   106.0    104.6    103.8	    98.8     88.5
   Weighted average number of 
     common equivalent shares (A)     --       0.1      *        *        * 
   Weighted average number of 
     preferred shares on an 
     "if converted" basis........    22.7     22.7      *        *        * 
                                  -------- -------- -------- -------- --------
   Total shares for computation     128.7    127.4    103.8     98.8     88.5
                                  ======== ======== ======== ======== ========
   Fully diluted income (loss) 
     per share (B):
     Income (loss) from continuing 
       operations................ $  0.18  $  0.52  $ (2.56) $ (4.18) $ (1.75)
     Income (loss) before extra-
       ordinary items and cumulative 
       effect of changes in 
       accounting principles.....    0.23     0.61    (3.32)   (4.37)   (3.89)
     Loss on extraordinary items.     --       --     (0.07)   (0.08)     --
     Cumulative effect of changes 
       in accounting principles..     --       --     (2.96)     --       --  
     Net income (loss)..........     0.23     0.61    (6.35)   (4.45)   (3.89)
<FN>
-------------------
*  Antidilutive

NOTES:
(A)  Common equivalent shares are included for dilutive stock options as if 
the options were exercised and the proceeds used to acquire common shares of 
Armco.
(B)  Calculation of fully diluted income (loss) per share is submitted for 
1994 in accordance with Securities Exchange Act of 1934 Release No. 9083, 
although it is contrary to paragraph 40 of APB Opinion No. 15 because it 
produces an antidilutive result, or is not required by footnote 2 to paragraph 
13 of APB Opinion No. 15 because it results in dilution of less than 3%.
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