Exhibit 12 CARPENTER TECHNOLOGY CORPORATION COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES -- unaudited Five years Ended June 30, 1996 (dollars in thousands) 1996 1995 1994 1993 1992 ---- ---- ---- ---- ---- Fixed charges: Interest costs (a) $ 19,275 $ 17,797 $ 19,651 $ 21,759 $ 20,627 Interest component of non-capitalized lease rental expense (b) 2,074 2,452 2,522 2,532 2,480 -------- -------- -------- -------- -------- Total fixed charges $ 21,349 $ 20,249 $ 22,173 $ 24,291 $ 23,107 ======== ======== ======== ======== ======== Earnings as defined: Income before income taxes, extraordinary charge and cumulative effect of changes in accounting principles $ 95,170 $ 74,571 $ 62,728 $ 42,799 $ 22,827 Fixed charges less interest capitalized 21,009 16,994 18,043 23,126 22,117 Amortization of capitalized interest 2,074 1,952 1,788 1,725 1,696 -------- -------- -------- -------- -------- Earnings as defined $118,253 $ 93,517 $ 82,559 $ 67,650 $ 46,640 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 5.5x 4.6x 3.7x 2.8x 2.0x ====== ====== ====== ====== ====== (a) Include interest capitalized relating to significant construction projects and amortization of debt discount and debt expense. (b) One-third of rental expense which approximates an interest component of non-capitalized leases.