Exhibit 12 Carpenter Technology Corporation Computation of Ratios of Earnings to Fixed Charges (unaudited) Five Years Ended June 30 and Three Months Ended September 30, 1997 (dollars in thousands) Three Months Year Ended June 30 Ended ------------------------------------------- 09/30/97 1997 1996 1995 1994 1993 -------- ---- ---- ---- ---- ---- Fixed charges Interest costs (a) $ 6,378 $ 22,330 $ 19,275 $ 17,797 $ 19,651 $ 21,759 Interest component of non-capitalized lease rental expense (b) 630 2,419 2,074 2,452 2,522 2,532 -------- -------- -------- -------- -------- -------- Total fixed charges $ 7,008 $ 24,749 $ 21,349 $ 20,249 $ 22,173 $ 24,291 ======== ======== ======== ======== ======== ======== Earnings as defined: Income before income taxes, extraordinary charge and cumulative effect of changes in accounting principles $ 27,941 $ 97,871 $ 95,170 $ 74,571 $ 62,728 $ 42,799 Add: Loss in less-than- fifty-percent-owned persons 296 1,188 7,025 3,000 910 - Less: Gain on sale of partial interest in less-than-fifty- percent-owned persons - - (2,650) - - - Fixed charges less interest capitalized 6,478 22,349 21,009 16,994 18,043 23,126 Amortization of capitalized interest 482 1,879 2,074 1,952 1,788 1,725 -------- -------- -------- -------- -------- -------- Earnings as defined $ 35,197 $123,287 $122,628 $ 96,517 $ 83,469 $ 67,650 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 5.0x 5.0x 5.7x 4.8x 3.8x 2.8x ======== ======== ======== ======== ======== ======== (a) Includes interest capitalized relating to significant construction projects and amortization of debt discount and debt expense. (b) One-third of rental expense which approximates the interest component of non-capitalized leases.