EX-12 3 d84217exv12.htm EX-12 exv12
Exhibit 12
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands, except ratios)
                                         
    2011     2010     2009     2008     2007  
EARNINGS (LOSS):*
                                        
EARNINGS (LOSS) BEFORE INCOME TAXES
     (113,064 )   $ (264,368 )   $ 33,925     $ 337,311     $ 536,056  
INTEREST EXPENSE
     70,806       75,508       77,562       59,488       37,257  
INTEREST IMPUTED ON RENT
     15,303       16,311       22,780       21,217       12,082  
AMORTIZATION OF CAPITALIZED INTEREST
     2,377       1,838       899       728       655  
 
                              
 
                                        
TOTAL EARNINGS (LOSS)
     (24,578 )     (170,711 )     135,166       418,744       586,050  
 
    
FIXED CHARGES:*
                                        
INTEREST EXPENSE
     70,806       75,508       77,562       59,488       37,257  
INTEREST CAPITALIZED
     794       4,538       12,638       6,877       3,198  
INTEREST IMPUTED ON RENT
     15,303       16,311       22,780       21,217       12,082  
 
                              
 
                                        
TOTAL FIXED CHARGES
     86,903       96,357       112,980       87,582       52,537  
RATIO OF EARNINGS TO FIXED CHARGES
     **       **       1.20       4.78       11.16  
 
*   Earnings (loss) and fixed charges include a division classified as discontinued operations.
 
**   Earnings for the year ended August 31, 2011 and 2010 were inadequate to cover fixed charges. The coverage deficiency was $111,481 for 2011 and $267,068 for 2010.