EX-12 2 cmc-8312012xex12.htm EX-12 CMC-8.31.2012-Ex 12


EXHIBIT 12
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands, except ratios)
 
 
 
 
 
 
 
 
 
 
 
 
 
2012
 
2011
 
2010
 
2009
 
2008
EARNINGS (LOSS):*
 
 
 
 
 
 
 
 
 
 
EARNINGS (LOSS) BEFORE INCOME TAXES
 
$
152,881

 
$
(113,064
)
 
$
(264,368
)
 
$
33,925

 
$
337,311

INTEREST EXPENSE
 
70,733

 
70,806

 
75,508

 
77,562

 
59,488

INTEREST IMPUTED ON RENT
 
14,645

 
15,303

 
16,311

 
22,780

 
21,217

AMORTIZATION OF CAPITALIZED INTEREST
 
2,341

 
2,377

 
1,838

 
899

 
728

TOTAL EARNINGS (LOSS)
 
240,600

 
(24,578
)
 
(170,711
)
 
135,166

 
418,744

FIXED CHARGES:*
 
 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
70,733

 
70,806

 
75,508

 
77,562

 
59,488

INTEREST CAPITALIZED
 
1,339

 
794

 
4,538

 
12,638

 
6,877

INTEREST IMPUTED ON RENT
 
14,645

 
15,303

 
16,311

 
22,780

 
21,217

TOTAL FIXED CHARGES
 
86,717

 
86,903

 
96,357

 
112,980

 
87,582

RATIO OF EARNINGS TO FIXED CHARGES
 
2.77

 
**

 
**

 
1.2

 
4.78

_______________________________________________
*    Earnings (loss) and fixed charges include a division classified as discontinued operations.
**
Earnings for the year ended August 31, 2011 and 2010 were inadequate to cover fixed charges. The coverage deficiency was $111,481 for 2011 and $267,068 for 2010.