EXHIBIT 12 APPLIED POWER INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EARNINGS TO FIXED CHARGES (IN THOUSANDS, EXCEPT RATIO DATA) YEAR ENDED AUGUST 31, -------------------------------------------------------------- 1998(1) 1997 1996 1995 1994 -------------------------------------------------------------- Net Earnings from continuing operations $26,687 $ 57,925 $50,679 $39,830 $29,747 Add Income Tax Expense 30,698 31,299 26,735 21,269 16,514 Add Interest Expense (2) 28,531 16,158 7,892 9,250 10,859 Portion of Rent deemed interest factor (3) 6,639 4,747 4,223 4,331 4,462 -------------------------------------------------------------- Total Earnings Available for Fixed Charges $92,555 $110,129 $89,529 $74,680 $61,582 ============================================================== Fixed Charges: Interest Expense (2) $28,531 $ 16,158 $ 7,892 $ 9,250 $10,859 Portion of Rent deemed interest factor (3) 6,639 4,747 4,223 4,331 4,462 --------------------------------------------------------------- Total Fixed Charges $35,170 $ 20,905 $12,115 $13,581 $15,321 ============================================================== Ratio of Earnings to Fixed Charges 2.6 5.3 7.4 5.5 4.0 ============================================================== _______________ The ratios reflect the combined results of operations and financial position of the Company and ZERO Corporation, acquired by merger on July 31, 1998, restated for all periods presented pursuant to the pooling-of- interests method of accounting, and reflect the results of other acquired companies from their respective effective dates of acquisition in accordance with the purchase method of accounting. (1) 1998 net earnings include a non-recurring restructuring charge of $52,637 which related to merger costs, various plant consolidations, and other cost reductions and product rationalization efforts of the Company. Excluding this charge and the related tax benefit, the ratio of earnings to fixed charges would have been 4.6. (2) Interest Expense consists of interest on indebtedness and amortization of debt expense. (3) 33% of rental expense is deemed representative of the interest factor.