|                                                   |              
|-------------------------------------------------- | -------------
|FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2000 | EXHIBIT 11.01

CARAUSTAR INDUSTRIES, INC.

COMPUTATION OF EARNINGS PER SHARE

(IN THOUSANDS, EXCEPT PER SHARE DATA)


(UNAUDITED)


COMPUTATION OF BASIC AND DILUTED EARNINGS PER COMMON SHARE

|                                   |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |        | 
|---------------------------------- | -------------------------------------------------- | ------------------ | - | ----------------- | - | ---- | - | ------ |  |  | - | ------ |  |  | - | ------ | 
|                                   |                                                    |                    |   |                  
|                                   |                                                    | Three Months Ended |   | Nine Months Ended
|                                   |                                                    | September 30,      |   | September 30,    
|                                   |                                                    |                    |   |                  
|                                   |                                                    | 2000               |   | 1999              |   | 2000 |   | 1999  
|                                   |                                                    |                    |   |                   |   |      |   |       
|Earnings:                          |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Net (loss) income available to common stock        |                    | $ | (2,561            | ) |      | $ | 10,055 |  |  | $ | 9,048  |  |  | $ | 31,786 | 
|                                   |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       
|Shares:                            |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Weighted average common shares outstanding         |                    |   | 25,932            |   |      |   | 25,100 |  |  |   | 25,780 |  |  |   | 24,942 | 
|                                  
|                                  
|                                  
|                                  
|                                   | Dilutive effect of stock options                   |                    |   | 0                 |   |      |   | 112    |  |  |   | 11     |  |  |   | 127    | 
|                                   |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       
|                                   | Average diluted shares outstanding and equivalents |                    |   | 25,932            |   |      |   | 25,212 |  |  |   | 25,791 |  |  |   | 25,069 | 
|                                  
|                                  
|                                  
|                                  
|Basic earnings per common share:   |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Net (loss) income                                  |                    | $ | (0.10             | ) |      | $ | 0.40   |  |  | $ | 0.35   |  |  | $ | 1.27   | 
|                                   |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       
|Diluted earnings per common share: |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Net (loss) income                                  |                    | $ | (0.10             | ) |      | $ | 0.40   |  |  | $ | 0.35   |  |  | $ | 1.27   | 
|                                   |                                                    |                    |   |                   |   |      |   |        |  |  |   |        |  |  |   |       

26