EX-12.1 29 g20430exv12w1.htm EX-12.1 STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-12.1 STMT RE: COMP OF RATIO OF EARNINGS TO FIX
Exhibit 12.1
Novelis Inc.
Computation of Ratio of Earnings to Fixed Charges
                                                                           
                            Three   April 1,     May 16,           Three   Three
                            Months   2007     2007   Year   Months   Months
    Year Ended   Year Ended   Year Ended   Ended   Through     Through   Ended   Ended   Ended
    December 31,   December 31,   December 31,   March 31,   May 15,     March 31,   March 31,   June 30,   June 30,
    2004   2005   2006   2007   2007     2008   2009   2008   2009
           
    Combined   Predecessor   Predecessor   Predecessor   Predecessor     Successor   Successor   Successor   Successor
(In millions, except ratio amounts)                                                                  
EARNINGS BEFORE FIXED CHARGES:
                                                                         
                                                                   
Net income (loss) from continuing operations before cumulative effect of accounting change and extraordinary items
  $ 55     $ 96     $ (275 )   $ (64 )   $ (97 )     $ (20 )   $ (1,910 )   $ 24     $ 143  
Less: Equity income of non-consolidated affiliates
    (6 )     (6 )     (16 )     (3 )     (1 )       (25 )     172       2       10  
Plus: Dividends received from non-consolidated affiliates
    2             5             4                           2  
Plus: Noncontrolling interest of subsidiaries that have fixed charges
    10       21       1       2       (1 )       4       (12 )     2       18  
           
                                                                   
Earnings before fixed charges
  $ 61     $ 111     $ (285 )   $ (65 )   $ (95 )     $ (41 )   $ (1,750 )   $ 28     $ 173  
           
                                                                   
FIXED CHARGES:
                                                                         
Amount representative of interest factor in rentals
  $ 6     $ 7     $ 7     $ 1     $ 1       $ 9     $ 8     $ 3     $ 2  
Interest expense and amortization of debt issuance costs
    74       203       221       54       27         191       182       45       43  
Interest expense from equity investees
    2       (1 )     1                     (1 )                  
Capitalized interests
    1       1       2                                        
           
Total fixed charges
    83       210       231       55       28         199       190       48       45  
Less: Capitalized interests
    (1 )     (1 )     (2 )                                      
           
Fixed charges added to income (loss)
  $ 82     $ 209     $ 229     $ 55     $ 28       $ 199     $ 190     $ 48     $ 45  
                                                                   
Plus: Amortization of capitalized interest
    6       7       9       1       (2 )                          
Plus: Income taxes
    166       107       (4 )     7       4         73       (246 )     35       112  
           
Earnings before fixed charges and income taxes
  $ 315     $ 434     $ (51 )   $ (2 )   $ (65 )     $ 231     $ (1,806 )   $ 111     $ 330  
           
                                                                   
RATIO OF EARNINGS TO FIXED CHARGES
    3.8 x     2.1 x     (A )     (A )     (A )       1.2 x     (A )     2.3 x     7.3 x
           
 
(A)   Due to losses incurred, the ratio coverage was less than 1:1 for each of the periods presented below. The table below presents the amount of additional earnings required to bring the fixed charge ratio to 1:1 for each respective period.
                                   
            Three          
            Months   April 1, 2007      
    Year Ended   Ended   Through     Year Ended
    December 31,   March 31,   May 15,     March 31,
    2006   2007   2007     2009
           
(In millions)   Predecessor   Predecessor   Predecessor     Successor
Additional earnings required to bring fixed charge ratio to 1:1
  $ 280     $ 57     $ 93       $ 1,996