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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2001 2000 1999 1998 1997
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Fixed charges, as defined:
Interest on long-term debt $ 16,919 $15,167 $14,599 $12,300 $11,769
Amortization of debt issue costs 500 485 456 383 368
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Total fixed charges $ 17,419 $15,652 $15,055 $12,683 $12,137
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Earnings, as defined:
Income (loss) before income taxes
and extraordinary item $(17,406) $ 193 $ 1,496 $ 1,302 $(3,509)
Fixed charges (as shown above) 17,419 15,652 15,055 12,683 12,137
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Earnings available for fixed $ 13 $15,845 $16,551 $13,985 $ 8,628
charges ======== ======= ======= ======= =======
Ratio of earnings to fixed charges[a] - 1.01x 1.10x 1.10x -
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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 of approximately ($17,406) in fiscal 2001 and
($3,509) in fiscal 1997 were insufficient to cover fixed charges.
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