EX-12 10 d75967exv12.htm EX-12 exv12
Exhibit 12
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands, except ratios)
                                         
    2010     2009     2008     2007     2006  
EARNINGS (LOSS):*
                                        
EARNINGS (LOSS) BEFORE INCOME TAXES
   $ (264,368 )   $ 33,925     $ 337,311     $ 536,056     $ 554,493  
INTEREST EXPENSE
     75,508       77,562       59,488       37,257       29,569  
INTEREST IMPUTED ON RENT
     16,311       22,780       21,217       12,082       8,293  
AMORTIZATION OF CAPITALIZED INTEREST
     1,838       899       728       655       1,224  
 
                              
 
                                        
TOTAL EARNINGS (LOSS)
     (170,711 )     135,166       418,744       586,050       593,579  
FIXED CHARGES:*
                                        
INTEREST EXPENSE
     75,508       77,562       59,488       37,257       29,569  
INTEREST CAPITALIZED
     4,538       12,638       6,877       3,198       2,256  
INTEREST IMPUTED ON RENT
     16,311       22,780       21,217       12,082       8,293  
 
                              
 
                                        
TOTAL FIXED CHARGES
     96,357       112,980       87,582       52,537       40,118  
RATIO OF EARNINGS TO FIXED CHARGES
     **       1.20       4.78       11.16       14.80  
 
*   Earnings (loss) and fixed charges include a division classified as discontinued operations.
 
**   Earnings for the year ended August 31, 2010 were inadequate to cover fixed charges. The coverage deficiency was $267,068.