Exhibit 12
SHEFFIELD STEEL CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
Years Ended April 30,
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1996 1997 1998 1999 2000
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Fixed charges, as defined:
Interest on long-term debt $11,758 $11,769 $12,300 $14,599 $15,167
Amortization of debt issue costs 476 368 383 456 485
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Total fixed charges $12,234 $12,137 $12,683 $15,055 $15,652
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Earnings, as defined:
Income (loss) before income taxes
and extraordinary item $(3,091) $(3,509) $ 1,302 $ 1,496 $ 193
Fixed charges (as shown above) 12,234 12,137 12,683 15,055 15,652
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Earnings available for fixed $ 9,143 $ 8,628 $13,985 $16,551 $15,845
charges ======= ======= ======= ======= =======
Ratio of earnings to fixed charges [a] - - 1.10x 1.10x 1.01x
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[a] Ratio of earnings to fixed charges is defined as income before income taxes
and extraordinary item plus amortization of debt issuance cost and interest
expense divided by the sum of interest expense plus amortization of debt
issuance costs. Earnings were insufficient to cover fixed charges by
approximately $3,091 in fiscal 1996 and $3,509 in fiscal 1997.