EX-12 8 a03-3069_1ex12.htm EX-12

Exhibit 12

 

 

Carpenter Technology Corporation

Computations of Ratios of Earnings to Fixed Charges — unaudited

Five years ended June 30, 2003

 

(dollars in millions)

 

 

 

 

2003

 

2002

 

2001

 

2000

 

1999

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest costs(a)

 

$

31.1

 

$

34.9

 

$

41.1

 

$

39.4

 

$

34.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest component of
non-capitalized lease rental
expense(b)

 

3.8

 

4.0

 

4.2

 

3.5

 

3.2

 

Total fixed charges

 

$

34.9

 

$

38.9

 

$

45.3

 

$

42.9

 

$

38.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings as defined:

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes
and cumulative effect of
accounting change

 

$

(22.9

)

$

(13.3

)

$

58.4

 

$

79.9

 

$

55.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Less income from less-than-fifty-
percent-owned entities, and add
loss on sale of partial interest in
less-than-fifty-percent owned
entities

 

(0.6

)

(0.4

)

(0.3

)

(1.1

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges less interest
capitalized

 

34.8

 

38.6

 

44.5

 

36.9

 

32.5

 

Amortization of capitalized interest

 

2.6

 

2.6

 

2.5

 

2.8

 

2.0

 

Earnings as defined

 

$

13.9

 

$

27.5

 

$

105.1

 

$

118.5

 

$

90.3

 

Ratio of earnings to fixed charges

 

0.4x

 

0.7x

 

2.3x

 

2.8x

 

2.4x

 

 

(a)                                  Includes interest capitalized relating to significant construction projects, and amortization of debt discount and debt issue costs.

 

(b)                                 One-third of rental expense which approximates the interest component of non-capitalized leases.