EX-12 7 exhibit126-30x2018.htm EXHIBIT 12
Exhibit 12
Carpenter Technology Corporation
Computation of Ratios of Earnings to Fixed Charges - unaudited
Five Years Ended June 30, 2018
($ in millions)

|  |  | Years Ended June 30,
|  |  | 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014
Fixed charges: |  |  |  |  |  |  |  |  |
| Interest costs (a) | $ | 31.1 |  |  | $ | 31.1 |  |  | $ | 29.9 |  |  | $ | 30.4 |  |  | $ | 32.1 |
| Interest component of non-capitalized lease rental expense (b) | 4.5 |  |  | 4.4 |  |  | 3.8 |  |  | 4.0 |  |  | 4.3 |
| Total fixed charges |  | $ | 35.6 |  |  | $ | 35.5 |  |  | $ | 33.7 |  |  | $ | 34.4 |  |  | $ | 36.4 |
Earnings as defined: |  |  |  |  |  |  |  |  |
| Income before income taxes | $ | 160.2 |  |  | $ | 70.2 |  |  | $ | 21.5 |  |  | $ | 89.1 |  |  | $ | 196.4 |
| 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 | ) |  | (0.1 | ) |  | (0.6 | )
| Fixed charges less interest capitalized | 32.9 |  |  | 34.2 |  |  | 31.8 |  |  | 31.7 |  |  | 21.3 |
| Amortization of capitalized interest | 1.4 |  |  | 1.3 |  |  | 1.3 |  |  | 1.4 |  |  | 1.4 |
| Earnings as defined | $ | 194.5 |  |  | $ | 105.7 |  |  | $ | 54.0 |  |  | $ | 122.1 |  |  | $ | 218.5 |
Ratio of earnings to fixed charges | 5.5x |  |  | 3.0x |  |  | 1.6x |  |  | 3.5x |  |  | 6.0x |

(a) Includes interest capitalized relating to significant construction projects, amortization of debt discount and debt issue costs.
(b) One-third of rental expense which approximates the interest component of non-capitalized leases.