Exhibit 12
Carpenter Technology Corporation
Computation of Ratios of Earnings to Fixed Charges — unaudited
Five Years Ended June 30, 2012
(dollars in millions)
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| Year Ended June 30, |
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| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
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Fixed charges: |
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Interest costs(a) |
| $ | 25.0 |
| $ | 17.6 |
| $ | 18.8 |
| $ | 20.1 |
| $ | 22.8 |
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Interest component of non-capitalized lease rental expense (b) |
| 3.3 |
| 2.4 |
| 2.3 |
| 2.1 |
| 2.2 |
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Total fixed charges |
| $ | 28.3 |
| $ | 20.0 |
| $ | 21.1 |
| $ | 22.2 |
| $ | 25.0 |
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Earnings as defined: |
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Income before income taxes |
| $ | 188.6 |
| $ | 87.8 |
| $ | 4.7 |
| $ | 63.0 |
| $ | 297.3 |
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Less income from less-than-fifty-percent owned entities, and loss on sale of partial interest in less-than-fifty percent owned enities |
| (0.6 | ) | (2.6 | ) | (1.0 | ) | 0.1 |
| (1.1 | ) | |||||
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Noncontrolling interst in the income of subsidiary with fixed charges |
| (0.4 | ) | (0.7 | ) | — |
| — |
| — |
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Fixed charges less interest capitalized |
| 27.1 |
| 19.5 |
| 20.1 |
| 18.2 |
| 22.7 |
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Amortization of capitalized interest |
| 1.8 |
| 2.6 |
| 2.8 |
| 2.5 |
| 2.5 |
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Earnings as defined |
| $ | 216.5 |
| $ | 106.6 |
| $ | 26.6 |
| $ | 83.8 |
| $ | 321.4 |
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Ratio of earnings to fixed charges |
| 7.7x |
| 5.3x |
| 1.3x |
| 3.8x |
| 12.9x |
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(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.