EX-12.1 11 g03624aexv12w1.txt EX-12.1 STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12.1 NOVELIS INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN MILLIONS OF US$)
NINE MONTHS ENDED SEPTEMBER 30, YEARS ENDED DECEMBER 31, ----------- ------------------------------------------ 2006 2005 2004 2003 2002 2001 ----------- ----- ----- ----- ----- ----- EARNINGS BEFORE FIXED CHARGES Net income (loss) from continuing operations before cumulative effect of accounting change ........................ $(170) $ 96 $ 55 $ 157 $ 75 $(137) Less: Equity income of less than 50% owned companies ..................... (12) (6) (6) (6) (8) (5) Plus: Dividends received from less than 50% owned companies .............. 3 2 2 -- -- -- Plus: Minority interest of subsidiaries that have fixed charges .......... 2 21 10 3 (8) (17) Plus: Income taxes ....................................................... 30 107 166 50 77 6 ----- ----- ----- ----- ----- ----- EARNINGS BEFORE FIXED CHARGES AND INCOME TAXES ............................ (147) 220 227 204 136 (153) ----- ----- ----- ----- ----- ----- PLUS FIXED CHARGES: Amount representative of interest factor in rentals ....................... 3 5 6 5 5 5 Interest expense and amortization of debt issuance costs .................. 161 203 74 40 42 64 Interest expense, less than 50% owned companies ........................... 1 1 2 1 5 7 Capitalized interest ...................................................... -- -- 1 1 1 -- ----- ----- ----- ----- ----- ----- TOTAL FIXED CHARGES ................................................ 165 209 83 47 53 76 ----- ----- ----- ----- ----- ----- Less: Capitalized interest ............................................... -- -- (1) (1) (1) -- Plus: Amortization of capitalized interest ............................... 6 7 6 8 7 9 ----- ----- ----- ----- ----- ----- EARNINGS ........................................................... $ 24 $ 436 $ 315 $ 258 $ 195 $ (68) ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- RATIO OF EARNINGS TO FIXED CHARGES ........................................ (1) 2.1X 3.8X 5.5X 3.7X (2) ===== ===== ===== ===== ===== =====
(1) Due to our net loss in the nine months ended September 30, 2006, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $141 million to achieve coverage of 1:1. (2) Due to our net loss in the year ended December 31, 2001, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $144 million to achieve coverage of 1:1.