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FORM 10-Q FOR THE QUARTER ENDED
SEPTEMBER 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 |   | Nine Months Ended
|                                   |                                                    | September 30,      |   | September 30,    
|                                   |                                                    |                    |   |                  
|                                   |                                                    | 2001               |   | 2000              |  | 2001 |   | 2000  
|                                   |                                                    |                    |   |                   |  |      |   |       
|Earnings:                          |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |       
|                                   | Net income (loss) available to common stock        |                    | $ | 955               |  |      | $ | (2,542 | ) |  | $ | (9,495 | ) |  | $ | 9,105  | 
|                                   |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |       
|Shares:                            |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |       
|                                   | Weighted average common shares outstanding         |                    |   | 27,856            |  |      |   | 25,932 |   |  |   | 27,841 |   |  |   | 25,780 | 
|                                   | Dilutive effect of stock options                   |                    |   | 0                 |  |      |   | 0      |   |  |   | 0      |   |  |   | 11     | 
|                                   |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |       
|                                   | Average diluted shares outstanding and equivalents |                    |   | 27,856            |  |      |   | 25,932 |   |  |   | 27,841 |   |  |   | 25,791 | 
|Basic earnings per common share:   |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |       
|                                   | Net income (loss)                                  |                    | $ | 0.03              |  |      | $ | (0.10  | ) |  | $ | (0.34  | ) |  | $ | 0.35   | 
|                                   |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |       
|Diluted earnings per common share: |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |       
|                                   | Net income (loss)                                  |                    | $ | 0.03              |  |      | $ | (0.10  | ) |  | $ | (0.34  | ) |  | $ | 0.35   | 
|                                   |                                                    |                    |   |                   |  |      |   |        |   |  |   |        |   |  |   |