EX-12 2 a14-15153_1ex12.htm EX-12

Exhibit 12

Carpenter Technology Corporation

Computation of Ratios of Earnings to Fixed Charges — unaudited

Five Years Ended June 30, 2014

(dollars in millions)

|  | Year Ended June 30, |
|  | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |
Interest costs(a) |  | $ | 32.1 |  | $ | 27.8 |  | $ | 25.0 |  | $ | 17.6 |  | $ | 18.8 |
Interest component of non-capitalized lease rental expense (b) |  | 4.3 |  | 4.1 |  | 3.3 |  | 2.4 |  | 2.3 |
Total fixed charges |  | $ | 36.4 |  | $ | 31.9 |  | $ | 28.3 |  | $ | 20.0 |  | $ | 21.1 |
Earnings as defined: |  |  |  |  |  |  |  |  |  |  |
Income before income taxes |  | $ | 196.4 |  | $ | 216.8 |  | $ | 188.6 |  | $ | 87.8 |  | $ | 4.7 |
Less income from less-than-fifty-percent owned entities, and loss on sale of partial interest in less-than-fifty percent owned entities |  | (0.6 | ) | (1.3 | ) | (0.6 | ) | (2.6 | ) | (1.0 | )
Noncontrolling interest in the income of subsidiary with fixed charges |  | — |  | (0.4 | ) | (0.4 | ) | (0.7 | ) | — |
Fixed charges less interest capitalized |  | 21.3 |  | 25.1 |  | 27.1 |  | 19.5 |  | 20.1 |
Amortization of capitalized interest |  | 1.4 |  | 1.5 |  | 1.8 |  | 2.6 |  | 2.8 |
Earnings as defined |  | $ | 218.5 |  | $ | 241.7 |  | $ | 216.5 |  | $ | 106.6 |  | $ | 26.6 |
Ratio of earnings to fixed charges |  | 6.0x |  | 7.6x |  | 7.7x |  | 5.3x |  | 1.3x |

(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.