Exhibit 12 CARPENTER TECHNOLOGY CORPORATION COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES -- UNAUDITED FIVE YEARS ENDED JUNE 30, 1997 AND THREE MONTHS ENDED SEPTEMBER 30, 1997 (dollars in thousands) Three Months Ended 9/30/97 1997 1996 1995 1994 1993 ------- ---- ---- ---- ---- ---- Fixed charges: Interest costs (a) $ 6,378 $ 22,330 $ 19,275 $17,797 $19,651 $21,759 Interest component of non- capitalized lease rental expense (b) 630 2,419 2,074 2,452 2,522 2,532 ------- -------- -------- ------- ------- ------- Total fixed charges $ 7,008 $ 24,749 $ 21,349 $20,249 $22,173 $24,291 ======= ======== ======== ======= ======= ======= Earnings as defined: Income before income taxes, extraordinary charge and cumulative effect of changes in accounting principles $27,941 $ 97,871 $ 95,170 $74,571 $62,728 $42,799 Add: Loss in less-than- fifty-percent-owned persons 296 1,188 7,025 3,000 910 - Less: Gain on sale of partial interest in less- than-fifty-percent-owned - - (2,650) - - - persons Fixed charges less interest capitalized 6,478 22,349 21,009 16,994 18,043 23,126 Amortization of capitalized interest 482 1,879 2,074 1,952 1,788 1,725 ------- -------- -------- ------- ------- ------- Earnings as defined $35,197 $123,287 $122,628 $96,517 $83,469 $67,650 ======= ======== ======== ======= ======= ======= Ratio of earnings to fixed charges 5.0x 5.0x 5.7x 4.8x 3.8x 2.8x ======= ======== ======== ======= ======= ======= (a) Includes interest capitalized relating to significant construction projects and amortization of debt discount and debt expense. (b) One-third of rental expense which approximates the interest component of non-capitalized leases. 1