Carpenter Technology (CRS) 10-K 2011 FY Annual report

Exhibit 12

Carpenter Technology Corporation

Computation of Ratios of Earnings to Fixed Charges – unaudited

Five Years ended June 30, 2011

(dollars in millions)

	Year Ended June 30,
	2011			2010			2009		2008			2007
Fixed charges:
Interest costs(a)	$	17.6		$	18.8		$	20.1	$	22.8		$	23.3
Interest component of non-capitalized lease rental expense(b)		2.4			2.3			2.1		2.2			3.0
Total fixed charges	$	20.0		$	21.1		$	22.2	$	25.0		$	26.3
Earnings as defined:
Income before income taxes	$	87.8		$	4.7		$	63.0	$	297.3		$	312.0
Less income from less-than-fifty-percent owned entities, and loss on sale of partial interest in less-than-fifty percent owned enities		(2.6	)		(1.0	)		0.1		(1.1	)		(1.2	)
Noncontrolling interest in the income of subsidiary with fixed charges		(0.7	)		—			—		—			—
Fixed charges less interest capitalized		19.5			20.1			18.2		22.7			25.8
Amortization of capitalized interest		2.6			2.8			2.5		2.5			2.5
Earnings as defined	$	106.6		$	26.6		$	83.8	$	321.4		$	339.1
Ratio of earnings to fixed charges		5.3x			1.3x			3.8x		12.9x			12.9x

^(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.