EX-12 7 armfy2006ex12.htm

Exhibit 12

 

ArvinMeritor, Inc.

Computation of Earnings to Fixed Charges

Twelve Months Ended September 30, 2006

 

 

Earnings Available for Fixed Charges (A):

 

 

 

 

 

 

 

 

 

Pre-tax loss from continuing operations

 

$

(216

)

 

 

 

 

 

Less:

 

 

 

 

Equity in earnings of affiliates, net of dividends

 

 

(13

)

 

 



 

 

 

 

(229

)

Add fixed charges included in earnings:

 

 

 

 

Interest expense

 

 

135

 

Interest element of rentals

 

 

12

 

 

 



 

Total

 

 

147

 

 

 



 

 

 

 

 

 

Total earnings available for fixed charges:

 

$

(82

)

 

 



 

 

 

 

 

 

Fixed Charges (B):

 

 

 

 

Fixed charges included in earnings

 

$

147

 

Capitalized interest

 

 

 

 

 



 

Total fixed charges

 

$

147

 

 

 



 

 

 

 

 

 

Ratio of Earnings to Fixed Charges (C)

 

 

N/A

 

 

(A) “Earnings” are defined as pre-tax income from continuing operations, adjusted for undistributed earnings of less than majority owned subsidiaries and fixed charges excluding capitalized interest.

 

(B) “Fixed charges” are defined as interest on borrowings (whether expensed or capitalized), the portion of rental expense applicable to interest, and amortization of debt issuance costs.

 

(C) Fixed charges exceeded earnings by $229 million for the fiscal year ending September 30, 2006, resulting in a ratio less than one.