Exhibit 12.1
GREENFIELD INDUSTRIES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
(dollars in thousands)
Historical Pro Forma
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Three
Months
Three Months Ended Year Ended Ended
Year Ended December 31, March 31, December 31, March 31,
1991 1992 1993 1994 1995 1995 1996 1995 1996
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Earnings:
Pre tax earnings (loss) ($11,833) $ 2,687 $21,984 $36,115 $52,855 $11,960 $14,431 $54,228 $16,156
Interest expense 13,814 12,764 8,302 3,169 8,223 2,117 3,513 6,919 1,788
Rent (1) 525 631 647 764 947 237 326 1,416 326
Preferred stock dividends -- -- -- -- -- -- -- 6,900 1,725
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Adjusted earnings (A) $2,506 $16,082 $30,933 $40,048 $62,205 $14,314 $18,270 $69,463 $19,995
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Fixed charges:
Interest $13,814 $12,764 $8,302 $3,169 $8,223 $2,117 $3,513 $6,919 $1,788
Rent (1) 525 631 647 764 947 237 326 1,416 326
Preferred stock dividends -- -- -- -- -- -- -- 6,900 1,725
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Adjusted fixed charges (B) $14,339 $13,395 $8,949 $3,933 $9,170 $2,354 $3,839 $15,235 $3,839
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Ratio of earnings to fixed charges (2) 1.20 3.46 10.18 6.76 6.08 4.76 4.56 5.21
(A/B)
<FN>
(1) The Company estimates that the interest portion of rent expense is equivalent to one-third of total rent expense.
(2) For the year ended December 31, 1991, earnings as calculated above were inadequate to cover fixed charges. The coverage
deficiency was $11,833.
</FN>