EX-12 3 dex12.htm COMPUTATION OF RATIOS COMPUTATION OF RATIOS

Exhibit 12

NewMarket Corporation and Subsidiaries

Computation of Ratio of Earnings to Fixed Charges

(Dollars in thousands, except ratios)

 

     Years Ended December 31,  
     2007    2006    2005    2004    2003  

Earnings:

               

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

    $ 100,424    $ 79,962    $ 33,798    $ 11,404    $ (261 )

Interest expense (net)

      11,557      15,403      16,849      18,254      21,128  

Portion of rent expense representative of interest factor

      6,097      5,787      5,636      6,438      5,650  

Amortization of capitalized interest

      251      346      1,144      1,515      1,498  
                                    

Adjusted pretax income from continuing operations

    $ 118,329    $ 101,498    $ 57,427    $ 37,611    $ 28,015  
                                    

Fixed Charges:

               

Interest expense (before deducting capitalized interest)

    $ 12,124    $ 15,624    $ 16,970    $ 18,441    $ 21,236  

Portion of rent expense representative of interest factor

      6,097      5,787      5,636      6,438      5,650  
                                    

Total fixed charges

    $ 18,221    $ 21,411    $ 22,606    $ 24,879    $ 26,886  
                                    

Ratio of earnings to fixed charges

      6.5      4.7      2.5      1.5      1.0