Exhibit 12
Carpenter Technology Corporation
Computation of Ratios of Earnings to Fixed Charges – unaudited
Five Years ended June 30, 2009
(dollars in millions)
Year Ended June 30, | |||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Fixed charges: | |||||||||||||||||||
Interest costs(a) | $ | 20.1 | $ | 22.8 | $ | 23.3 | $ | 23.6 | $ | 23.1 | |||||||||
Interest component of non-capitalized lease rental expense(b) | 2.1 | 2.2 | 3.0 | 1.8 | 2.6 | ||||||||||||||
Total fixed charges | $ | 22.2 | $ | 25.0 | $ | 26.3 | $ | 25.4 | $ | 25.7 | |||||||||
Earnings as defined: | |||||||||||||||||||
Income before income taxes | $ | 63.0 | $ | 297.3 | $ | 312.0 | $ | 291.4 | $ | 190.0 | |||||||||
Less income from less-than-fifty-percent owned entities, and loss on sale of partial interest in less-than-fifty percent owned entities | 0.1 | (1.1 | ) | (1.2 | ) | (1.6 | ) | (0.9 | ) | ||||||||||
Fixed charges less interest capitalized | 18.2 | 22.7 | 25.8 | 25.1 | 25.6 | ||||||||||||||
Amortization of capitalized interest | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 | ||||||||||||||
Earnings as defined | $ | 83.8 | $ | 321.4 | $ | 339.1 | $ | 317.4 | $ | 217.2 | |||||||||
Ratio of earnings to fixed charges | 3.8x | 12.9x | 12.9x | 12.5x | 8.5x | ||||||||||||||
(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. |