Earnings Per Common Share

6 Months Ended

Dec. 31, 2012

Earnings Per Common Share

Earnings Per Common Share

3.         Earnings Per Common Share

The Company calculates basic earnings per share using the two class method.  Under the two class method, earnings are allocated to common stock and participating securities (nonvested restricted shares and units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings.  The earnings available to each class of stock is divided by the weighted average number of shares for the period in each class.  Because the participating securities have no obligation to share in net losses, losses are not allocated to the participating securities in this calculation.

The calculations of basic and diluted earnings per common share for the three months and six months ended December 31, 2012 and 2011 were as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
(in millions, except per share data)	2012		2011		2012		2011
Net income attributable to Carpenter	$	33.0	$	23.6	$	72.2	$	47.4
Less: earnings and dividends allocated to participating securities	(0.2)		(0.2)		(0.4)		(0.4)
Earnings available to Carpenter common stockholders	$	32.8	$	23.4	$	71.8	$	47.0
Weighted average number of common shares outstanding, basic	52.9		44.4		52.8		44.4
Effect of shares issuable under share based compensation plans	0.6		0.7		0.6		0.7
Weighted average number of common shares outstanding, diluted	53.5		45.1		53.4		45.1
Basic earnings per common share	$	0.62	$	0.53	$	1.36	$	1.06
Diluted earnings per common share	$	0.62	$	0.52	$	1.35	$	1.05

The following awards issued under share-based compensation plans were excluded from the above calculations of diluted earnings per share because their effects were anti-dilutive:

	Three Months Ended December 31,		Six Months Ended December 31,
(in millions)	2012	2011	2012	2011
Stock options	0.3	0.1	0.3	0.1