EX-12.1 4 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,  
     2005    2004    2003    2002    2001 (a)  

Earnings:

               

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

    $ 56,952    $ 44,630    $ 29,342    $ 13,269    $ (152,691 )

Interest expense (net)

      16,849      18,254      21,128      25,574      32,808  

Portion of rent expense representative of interest factor

      5,636      6,438      5,650      4,738      5,687  

Amortization of capitalized interest

      1,144      1,515      1,498      1,547      1,586  
                                    

Adjusted pretax income from continuing operations

    $ 80,581    $ 70,837    $ 57,618    $ 45,128    $ (112,610 )
                                    

Fixed Charges:

               

Interest expense (before deducting capitalized interest)

    $ 16,970    $ 18,441    $ 21,236    $ 25,687    $ 32,829  

Portion of rent expense representative of interest factor

      5,636      6,438      5,650      4,738      5,687  
                                    

Total fixed charges

    $ 22,606    $ 24,879    $ 26,886    $ 30,425    $ 38,516  
                                    

Ratio of earnings to fixed charges

      3.6      2.8      2.1      1.5      N/A  

 

(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.