Carpenter Technology (CRS) 10-K 2003 FY Annual report

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.