Exhibit 12 THE STANLEY WORKS AND SUBSIDIARIES COMPUTATION OF EARNINGS TO FIXED CHARGES (in Millions of Dollars) Fiscal Year Ended ------------------------------------------------------------------------ January 3 December 28 December 30 December 31 January 1 1998 1996 1995 1994 1994 --------- ----------- ----------- ----------- --------- Earnings (loss) before income taxes and cumulative adjustment for accounting change ($18.6) $174.2 $112.8 $201.8 $148.0 Add: Portion of rents representative of interest factor $11.6 $ 12.2 $ 13.4 $ 12.7 $ 11.7 Interest expense 24.2 27.6 35.2 33.1 31.4 Amortization of expense on long-term debt 0.2 0.2 0.3 0.2 0.4 Amortization of capitalized interest 0.3 0.3 0.3 0.4 0.4 ------ ------ ------ ------ ------ Income as adjusted $17.7 $214.5 $162.0 $248.2 $191.9 ====== ====== ====== ====== ====== Fixed charges: Interest expense $24.2 $ 27.6 $ 35.2 $ 33.1 $ 31.4 Amortization of expense on long-term debt 0.2 0.2 0.3 0.2 0.4 Capitalized interest -- 0.2 0.1 -- 0.1 Portion of rents representative of interest factor 11.6 12.2 13.4 12.7 11.7 ------ ------ ------ ------ ------ Fixed charges $36.0 $40.2 $49.0 $46.0 $43.6 ====== ====== ====== ====== ====== Ratio of earnings to fixed charges 0.49 5.34 3.31 5.40 4.40 ====== ====== ====== ====== ======