EX-12.1 5 a2149187zex-12_1.htm EXHIBIT 12.1
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Exhibit 12.1


COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS (UNAUDITED)
(in millions)

 
  Predecessor
  Successor
 
 
  Celanese
   
   
   
 
 
  Year Ended
December 31,

   
  Three Months Ended March 31, 2004
  Six
Months
Ended
September 30,
2004

   
  Pro Forma Nine Months Ended September 30, 2004
 
 
  Nine Months Ended September 30, 2003
  Pro Forma Year Ended December 31, 2003
 
 
  1999
  2000
  2001
  2002
  2003
 
Earnings:                                                              
Pre-tax earnings (loss) from continuing operations excluding minority interest expense   $ (647 ) $ 185   $ (419 ) $ 184   $ 203   $ 206   $ 80   $ (135 ) $ 203   $ (55 )
Change in interest expense                                                     (189 )   50  
                                                   
 
 
Pro forma pre-tax earnings (loss) from continuing operations                                                     14     (5 )
Less:                                                              
  (Income) loss from equity investees, net     (7 )   (18 )   (12 )   (21 )   (35 )   (29 )   (12 )   (35 )   (35 )   (47 )
Plus:                                                              
  Income distributions from equity investments     7     12     19     61     23     21     15     20     23     35  
  Amortization of capitalized interest     8     9     9     10     14     10     2     4     14     6  
  Combined Fixed charges     150     103     104     89     85     65     16     244     287     220  
   
 
 
 
 
 
 
 
 
 
 
Total "earnings" as defined before combined fixed charges   $ (489 ) $ 291   $ (299 ) $ 323   $ 290   $ 273   $ 101   $ 98   $ 303   $ 209  
   
 
 
 
 
 
 
 
 
 
 

Combined fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Interest expense   $ 115   $ 68   $ 72   $ 55   $ 49   $ 36   $ 6   $ 228   $ 238   $ 184  
Capitalized interest     14     12     4     6     3     5     3     2     3     5  
Estimated interest portion of rent expense(1)     21     23     28     28     33     24     7     14     33     21  
Preferred stock dividends                                     13     10  
   
 
 
 
 
 
 
 
 
 
 
Total combined fixed charges   $ 150   $ 103   $ 104   $ 89   $ 85   $ 65   $ 16   $ 244   $ 287   $ 220  
   
 
 
 
 
 
 
 
 
 
 

Ratio of earnings to combined fixed charges(2)

 

 


 

 

2.8

x

 


 

 

3.6

x

 

3.4

x

 

4.2

x

 

6.2

x

 


 

 

1.1

x

 


 

(1)
The estimated interest portion of rental expense is based on the amount of rental expense including discontinued operations for 1999 and 2000 and excluding discontinued operations for subsequent periods.

(2)
Earnings were insufficient to cover combined fixed charges by $639 million for the year ended December 31, 1999, $403 million for the year ended December 31, 2001, $146 million for the six months ended September 30, 2004 and $11 million for the pro forma nine months ended September 30, 2004.



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COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (UNAUDITED) (in millions)