EX-12.1 2 c70120exv12w1.htm EXHIBIT 12.1 Exhibit 12.1
 

Exhibit 12.1
QUANEX CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
Ratio of earnings to fixed charges is computed by dividing earnings, as defined, by fixed charges. Fixed charges consist of interest charges, (both expensed and capitalized), amortization of debt issuance costs and the portion of rental expense representative of the interest factor. The computation is as follows:
                                         
    Fiscal years ended October 31,  
    2002     2003     2004     2005     2006  
Earnings:
                                        
Income from continuing operations before taxes
   $ 53,276     $ 43,646     $ 57,428     $ 177,233     $ 160,313  
Add: fixed charges (from below)
     13,787       3,578       7,297       10,972       7,391  
 
                              
 
   $ 67,063     $ 47,224     $ 64,725     $ 188,205     $ 167,704  
 
                              
Fixed Charges:
                                        
Interest expense
   $ 14,812     $ 2,517     $ 5,551     $ 8,825     $ 4,260  
Debt issuance amortization
     121       312       535       585       583  
Capitalized interest
     (1,879 )     —       —       —       —  
1/3 of rental expense
     733       749       1,211       1,562       2,548  
 
                              
 
   $ 13,787     $ 3,578     $ 7,297     $ 10,972     $ 7,391  
 
                              
Ratio of earnings to fixed charges
     4.9x       13.2x       8.9x       17.2x       22.7x