Exhibit 12.1
QUANEX CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
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, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations before taxes | $ | 25,673 | $ | 61,456 | $ | 64,956 | $ | 57,131 | $ | 15,904 | ||||||||||
Add: fixed charges (from below) | 1,786 | 2,261 | 2,857 | 2,265 | 2,113 | |||||||||||||||
$ | 27,459 | $ | 63,717 | $ | 67,813 | $ | 59,396 | $ | 18,017 | |||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 1,032 | $ | 1,354 | $ | 1,002 | $ | 582 | $ | 441 | ||||||||||
Debt issuance amortization | — | — | 21 | 9 | 39 | |||||||||||||||
Capitalized interest | — | — | — | — | — | |||||||||||||||
1/3 of rental expense | 754 | 907 | 1,834 | 1,674 | 1,633 | |||||||||||||||
$ | 1,786 | $ | 2,261 | $ | 2,857 | $ | 2,265 | $ | 2,113 | |||||||||||
Ratio of earnings to fixed charges | 15.4x | 28.2x | 23.7x | 26.2x | 8.5x | |||||||||||||||