EX-12 12 dex12.txt COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGE Exhibit 12 Carpenter Technology Corporation Computations of Ratios of Earnings to Fixed Charges -- Unaudited Five years ended June 30, 2001 (dollars in millions) 2001 2000 1999 1998/(b)/ 1997 ------------------------------------------------------------ Fixed charges: Interest costs/(a)/ $ 41.1 $ 39.4 $ 34.8 $ 31.2 $ 22.3 Interest component of non-capitalized lease rental expense/(c)/ 4.2 3.5 3.2 2.9 2.4 ------------------------------------------------------------ Total fixed charges $ 45.3 $ 42.9 $ 38.0 $ 34.1 $ 24.7 ============================================================ Earnings as defined: Income before income taxes and cumulative effect of accounting change $ 58.4 $ 79.9 $ 55.8 $136.9 $ 97.9 Less Income from less-than-fifty- percent-owned entities, and add loss on sale of partial interest in less-than-fifty-percent owned entities (.3) (1.1) - 3.4 1.2 Fixed charges less interest capitalized 44.5 36.9 32.5 32.0 22.3 Amortization of capitalized interest 2.5 2.8 2.0 1.9 1.9 ------------------------------------------------------------ Earnings as defined $105.1 $118.5 $ 90.3 $174.2 $123.3 ------------------------------------------------------------ Ratio of earnings to fixed charges 2.3x 2.8x 2.4x 5.1x 5.0x ============================================================
/(a)/ Includes amortization of debt discount and debt issue costs, and is before reduction for interest capitalized related to significant plant, equipment and software projects. /(b)/ Excludes interest and earnings related to net assets held for sale. /(c)/ One-third of rental expense which approximates the interest component of non-capitalized leases.