EX-12 3 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

 

RATIO OF EARNINGS TO FIXED CHARGES

 

The following table sets forth Chiquita Brands International, Inc.’s ratio of earnings to fixed charges on a historical basis for each of the periods indicated below.

 

     Reorganized Company

    Predecessor Company

 
     Six Months
Ended June 30,


    Year Ended
December 31,


    Nine Months
Ended
December 31,


    Quarter Ended
March 31,


    Year Ended
December 31,


 
     2005

    2004

    2004

    2003

    2002

    2002

    2001

    2000

 
                 (Dollars in Millions)  

Earnings:

                                                                

Income (loss) from continuing operations

   $ 150.2     $ 50.2     $ 55.4     $ 95.9     $ (6.6 )   $ (189.7 )   $ (120.2 )   $ (109.1 )

Fixed charges
(see below)

     27.0       28.0       54.9       59.1       41.7       11.6       124.6       129.7  

Income taxes

     6.0       (0.5 )     5.4       5.3       4.8       1.0       5.8       6.8  

Income distributions of equity investees

     0.2       —         0.3       1.7       1.8       0.2       1.7       1.9  

Less: (income) loss from unconsolidated equity investees

     (4.8 )     (8.1 )     (11.2 )     (12.2 )     (10.5 )     (0.9 )     1.7       2.9  

Less: capitalized interest

     —         —         —         —         —         —         —         (1.3 )
    


 


 


 


 


 


 


 


Total earnings
(as defined)

   $ 178.6     $ 69.6     $ 104.8     $ 149.8     $ 31.2     $ (177.8 )   $ 13.6     $ 30.9  
    


 


 


 


 


 


 


 


Fixed Charges:

                                                                

Interest expense

   $ 15.4     $ 20.0     $ 38.9     $ 42.4     $ 30.3     $ 7.6     $ 111.2     $ 113.8  

Capitalized interest

     —         —         —         —         —         —         —         1.3  

Estimated interest component of rental expense

     11.6       8.0       16.0       16.7       11.4       4.0       13.4       14.6  
    


 


 


 


 


 


 


 


Total fixed charges
(as defined)

   $ 27.0     $ 28.0     $ 54.9     $ 59.1     $ 41.7     $ 11.6     $ 124.6     $ 129.7  
    


 


 


 


 


 


 


 


Ratio of Earnings to Fixed Charges

     6.61 x     2.49 x     1.91 x     2.53 x     (a )     (a )     (a )     (a )

(a) For these periods, earnings were inadequate to cover fixed charges. The amount of the coverage deficiency was $10.5 million for the nine months ended December 31, 2002, $189.4 million for the quarter ended March 31, 2002, $111.0 million for the year ended December 31, 2001 and $98.8 million for the year ended December 31, 2000.