EX-12 3 cmc-8312013xex12.htm EX-12 CMC-8.31.2013-Ex 12


EXHIBIT 12
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands, except ratios)
 
 
 
 
 
 
 
 
 
 
 
 
 
2013
 
2012
 
2011
 
2010
 
2009
Earnings (loss) from continuing operations before taxes
 
$
132,936

 
$
164,787

 
$
26,131

 
$
(164,791
)
 
$
24,789

Less: Net earnings (loss) attributable to noncontrolling interests
 
4

 
6

 
213

 
236

 
(550
)
Capitalized interest amortization
 
2,305

 
2,341

 
2,377

 
2,012

 
899

Fixed charges
 
86,108

 
85,421

 
85,872

 
93,948

 
110,917

Less: Capitalized interest
 
(1,004
)
 
(1,339
)
 
(794
)
 
(4,359
)
 
(12,010
)
Total
 
$
220,341

 
$
251,204

 
$
113,373

 
$
(73,426
)
 
$
125,145

Fixed Charges:
 


 
 
 
 
 
 
 
 
Interest expense
 
$
70,612

 
$
70,826

 
$
70,608

 
$
78,540

 
$
88,974

Portion of rental expense representative of interest factor
 
15,496

 
14,595

 
15,264

 
15,408

 
21,943

Total fixed charges
 
$
86,108

 
$
85,421

 
$
85,872

 
$
93,948

 
$
110,917

Ratio of earnings to fixed charges
 
2.56

 
2.94

 
1.32

 
*

 
1.13

_______________________________________________
*    Earnings for the year ended August 31, 2010 were inadequate to cover fixed charges due to asset impairment charges and losses from discontinued operations. The coverage deficiency was approximately $167 million for the year ended August 31, 2010.