EX-12 2 exhibit12.htm EXHIBIT 12

Exhibit 12

ArvinMeritor, Inc.

Computation of Ratio of Earnings to Fixed Charges

Six Months Ended March 31, 2009

 

Earnings Available for Fixed Charges (A):

       
         

Pre-tax income from continuing operations

 

$

(420

)

         

Less:

       

Equity in earnings of affiliates, net of dividends

   

1

 
     

(419

)

Add: fixed charges included in earnings:

       

Interest expense

   

48

 

Interest element of rentals

   

4

 

Total

   

52

 
         

Total earnings available for fixed charges:

 

$

(367

)

         

Fixed Charges (B):

       

Fixed charges included in earnings

 

$

52

 

Capitalized interest

   

 

Total fixed charges

 

$

52

 
         

Ratio of Earnings to Fixed Charges

   

(C)

 


(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) The ratio coverage was less than 1:1. The company must generate additional earnings of $419 million to achieve coverage of 1:1.