EX-12.1 7 dex121.htm EXHIBIT 12.1 Exhibit 12.1

Exhibit 12.1

 

NewMarket Corporation and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(Dollars in thousands, except ratios)

 

     Years Ended December 31,

     2004

   2003

   2002

   2001 (a)

    2000

Earnings:

                                   

Pretax income from continuing operations before discontinued operations and cumulative effect of accounting changes

   $ 44,630    $ 29,342    $ 13,269    $ (152,691 )   $ 85,148

Interest expense (net)

     18,254      21,128      25,574      32,808       36,075

Portion of rent expense representative of interest factor

     6,438      5,650      4,738      5,687       6,727

Amortization of capitalized interest

     1,515      1,498      1,547      1,586       1,649
    

  

  

  


 

Adjusted pretax income from continuing operations

   $ 70,837    $ 57,618    $ 45,128    $ (112,610 )   $ 129,599
    

  

  

  


 

Fixed Charges:

                                   

Interest expense (before deducting capitalized interest)

   $ 18,441    $ 21,236    $ 25,687    $ 32,829     $ 36,138

Portion of rent expense representative of interest factor

     6,438      5,650      4,738      5,687       6,727
    

  

  

  


 

Total fixed charges

   $ 24,879    $ 26,886    $ 30,425    $ 38,516     $ 42,865
    

  

  

  


 

Ratio of earnings to fixed charges

     2.8      2.1      1.5      N/A       3.0

 

(a)   Due to a loss for the year ended December 31, 2001, the coverage ratio was less than 1:1. The Company needed to generate an additional $151.1 million in earnings to achieve a coverage ratio of 1:1.