EXHIBIT 12
ARMCO INC.
HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
SIX MONTHS ENDED
JUNE 30, FOR THE YEAR ENDED DECEMBER 31,
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1997 1996 1996 1995 1994 1993 1992
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Income (loss) from continuing operations......... $ 29.6 $ 2.9 $ 26.0 $ 23.5 $ 65.8 $ (247.5) $ (421.9)
Income tax provision (benefit)................... 1.3 0.6 1.4 2.0 (28.7) (7.3) (34.0)
Adjustment to pretax income (loss) for
unconsolidated businesses and minority
interest....................................... 0.8 0.5 (7.8) 0.9
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Pretax income (loss) from continuing operations.. 30.9 3.5 27.4 26.3 37.6 (262.6) (455.0)
Add fixed charges:
Interest expense--consolidated group........... 17.2 18.5 36.4 33.0 44.1 79.6 44.6
Interest expenses--50% or more owned
unconsolidated subsidiaries.................. 27.1
Interest portion of rental expense............. 0.8 0.8 1.5 2.5 2.5 4.3 4.8
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Total fixed charges.......................... 18.0 19.3 37.9 35.5 46.6 83.9 76.5
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Total income (loss) and fixed charges........ $ 48.9 $ 22.8 $ 65.3 $ 61.8 $ 84.2 $ (178.7) $ (378.5)
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Fixed charges
From above..................................... $ 18.0 $ 19.3 $ 37.9 $ 35.5 $ 46.6 $ 83.9 $ 76.5
Capitalized interest........................... 0.6 0.3 0.8 5.1 4.9 1.8 6.2
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Total fixed charges.............................. $ 18.6 $ 19.6 $ 38.7 $ 40.6 $ 51.5 $ 85.7 $ 82.7
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Ratio............................................ 2.6x 1.2x 1.7x 1.5x 1.6x * *
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* For the years ended December 31, 1993 and 1992, earnings as defined were
insufficient to cover fixed charges by $264.4 million and $461.2 million,
respectively.