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,
-----------------------------------------------------------------------------------
Three Months Ended
November 30, 1998(1)(2) 1998(3) 1997 1996 1995 1994
-----------------------------------------------------------------------------------
Net Earnings from continuing operations $16,401 $26,687 $ 57,925 $50,679 $39,830 $29,747
Add Income Tax Expense 9,802 30,698 31,299 26,735 21,269 16,514
Add Interest Expense (4) 13,899 28,531 16,158 7,892 9,250 10,859
Portion of Rent deemed interest factor (5) 2,020 6,639 4,747 4,223 4,331 4,462
-----------------------------------------------------------------------------------
Total Earnings Available
for Fixed Charges $42,122 $92,555 $110,129 $89,529 $74,680 $61,582
===================================================================================
Fixed Charges:
Interest Expense (4) $13,899 $28,531 $ 16,158 $ 7,892 $ 9,250 $10,859
Portion of Rent deemed interest factor (5) 2,020 6,639 4,747 4,223 4,331 4,462
-----------------------------------------------------------------------------------
Total Fixed Charges $15,919 $35,170 $ 20,905 $12,115 $13,581 $15,321
===================================================================================
Ratio of Earnings to Fixed Charges 2.6 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) The Company's business has historically experienced the effects of
seasonality where the second half of the fiscal year generally produces
better results than the first half. The results for the first quarter ended
November 30, 1998, are not necessarily indicative of full year results.
(2) Net earnings for the three month period ended November 30, 1998, include a
one-time pre-tax contract termination charge of $7,824. Excluding this
charge and the related tax benefit, the ratio of earnings to fixed charges
would have been 3.1.
(3) 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.
(4) Interest Expense consists of interest on indebtedness and amortization of
debt expense.
(5) 33% of rental expense is deemed representative of the interest factor.