FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2001

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 |   | Six Months Ended
|                                   |                                                    | June 30,           |   | June 30,        
|                                   |                                                    |                    |   |                 
|                                   |                                                    | 2001               |   | 2000             |  | 2001 |   | 2000  
|                                   |                                                    |                    |   |                  |  |      |   |       
|Earnings:                          |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Net income (loss) available to common stock        |                    | $ | 376              |  |      | $ | 9,486  |  |  | $ | (10,450 | ) |  | $ | 11,647 | 
|                                   |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |       
|Shares:                            |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Weighted average common shares outstanding         |                    |   | 27,852           |  |      |   | 25,784 |  |  |   | 27,834  |   |  |   | 25,704 | 
|                                  
|                                  
|                                  
|                                  
|                                   | Dilutive effect of stock options                   |                    |   | 13               |  |      |   | 9      |  |  |   | 6       |   |  |   | 17     | 
|                                   |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |       
|                                   | Average diluted shares outstanding and equivalents |                    |   | 27,865           |  |      |   | 25,793 |  |  |   | 27,840  |   |  |   | 25,721 | 
|                                  
|                                  
|                                  
|                                  
|Basic earnings per common share:   |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Net income (loss)                                  |                    | $ | 0.01             |  |      | $ | 0.37   |  |  | $ | (0.38   | ) |  | $ | 0.45   | 
|                                   |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |       
|Diluted earnings per common share: |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |       
|                                  
|                                  
|                                  
|                                  
|                                   | Net income (loss)                                  |                    | $ | 0.01             |  |      | $ | 0.37   |  |  | $ | (0.38   | ) |  | $ | 0.45   | 
|                                   |                                                    |                    |   |                  |  |      |   |        |  |  |   |         |   |  |   |