Exhibit 12.1
The Timken Company
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
Six Months Ended June 30, 2015 | Year Ended December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||
Income (loss) from continuing operations before tax | $ | (89.5 | ) | $ | 204.0 | $ | 290.1 | $ | 517.8 | $ | 431.4 | $ | 267.1 | |||||||||||
Share of undistributed (losses) income from 50%-or-less owned affiliates, excluding affiliates with guaranteed debt | (0.4 | ) | (0.6 | ) | (0.4 | ) | 0.5 | 0.5 | (0.2 | ) | ||||||||||||||
Amortization of capitalized interest | 0.3 | 0.9 | (1.3 | ) | (1.3 | ) | (1.4 | ) | (1.4 | ) | ||||||||||||||
Interest expense | 16.4 | 28.7 | 24.4 | 31.1 | 36.8 | 38.2 | ||||||||||||||||||
Interest portion of rental expense | 2.4 | 5.2 | 8.0 | 8.0 | 7.6 | 6.4 | ||||||||||||||||||
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Earnings (loss) | $ | (70.8 | ) | $ | 238.2 | $ | 320.8 | $ | 556.1 | $ | 474.9 | $ | 310.1 | |||||||||||
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Interest | $ | 16.4 | $ | 30.4 | $ | 37.1 | $ | 36.0 | $ | 36.8 | $ | 38.2 | ||||||||||||
Interest portion of rental expense | 2.4 | 5.2 | 8.0 | 8.0 | 7.6 | 6.4 | ||||||||||||||||||
Fixed Charges | $ | 18.8 | $ | 35.6 | $ | 45.1 | $ | 44.0 | $ | 44.4 | $ | 44.6 | ||||||||||||
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Ratio of Earnings to Fixed Charges | (1 | ) | 6.69 | 7.11 | 12.64 | 10.70 | 6.95 | |||||||||||||||||
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(1) | Due to the incurrence of pension settlement and curtailment charges of $219.6 million during the first six months of 2015, which is discussed in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2015, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $89.6 million to cover our fixed charges. |