EX-12 6 dex12.htm COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES Computations of Ratios of Earnings to Fixed Charges

Exhibit 12

Carpenter Technology Corporation

Computation of Ratios of Earnings to Fixed Charges — unaudited

Five Years ended June 30, 2010

(dollars in millions)

 

     Year Ended June 30,  
     2010     2009    2008     2007     2006  

Fixed charges:

           

Interest costs(a)

   $ 18.8      $ 20.1    $ 22.8      $ 23.3      $ 23.6   

Interest component of non-capitalized lease rental expense (b)

     2.3        2.1      2.2        3.0        1.8   
                                       

Total fixed charges

   $ 21.1      $ 22.2    $ 25.0      $ 26.3      $ 25.4   
                                       

Earnings as defined:

           

Income before income taxes

   $ 4.7      $ 63.0    $ 297.3      $ 312.0      $ 291.4   

Less income from less-than-fifty-percent owned entities, and loss on sale of partial interest in less-than-fifty percent owned enities

     (1.0     0.1      (1.1     (1.2     (1.6

Fixed charges less interest capitalized

     20.1        18.2      22.7        25.8        25.1   

Amortization of capitalized interest

     2.8        2.5      2.5        2.5        2.5   
                                       

Earnings as defined

   $ 26.6      $ 83.8    $ 321.4      $ 339.1      $ 317.4   
                                       

Ratio of earnings to fixed charges

     1.3x        3.8x      12.9x        12.9x        12.5x   
                                       

 

(a)

Includes interest capitalized relating to significant construction projects, and amortization of debt discount and debt issue costs.

(b)

One-third of rental expense which approximates the interest component of non-capitalized leases.