EX-12 2 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

 

 

          2002

    2003

    2004

   9/30/04

   9/30/05

Computation of Earnings:

                                         

Income/(loss) from continuing operations before income taxes and cumulative effect of a change in accounting

        ($ 207 )   $ 53     $ 104    $ 100    $ 112

Adjustments to income:

                                         

Add:              Distributed income from less than 50% owned companies

          5       9       11      8      6

Add:              Fixed charges as presented below

          355       398       380      285      298

Subtract:       Interest capitalized

                  (1 )     0      0      0

Add:              Amortization of interest previously capitalized

                  1       1      1      1
         


 


 

  

  

Earnings

        $ 153     $ 460     $ 496    $ 394    $ 417
         


 


 

  

  

Computation of Fixed Charges:

                                         

Interest incurred

        $ 342     $ 356     $ 338    $ 253    $ 270

Amortization of debt-related costs

          2       23       23      17      13

Portion of rental expense representative of interest (1)

          11       18       19      14      15

Interest capitalized

                  1              1       
         


 


 

  

  

Total fixed charges

          355       398       380      285      298
         


 


 

  

  

Preferred stock dividend requirements

                                         
         


 


 

  

  

Combined fixed charges and preferred stock dividends

        $ 355     $ 398     $ 380    $ 285    $ 298
         


 


 

  

  

Ratio of earnings to fixed charges

   (2)(3)      *       1.2       1.3      1.4      1.4

Ratio of earnings to combined fixed charges and preferred stock dividends

   (2)(3)      *       1.2       1.3      1.4      1.4

 


(1) One-third of net rent expense is the portion deemed representative of the interest factor.

 

(2) Earnings did not cover fixed charges and preferred stock dividends by: ($202)

 

(3) Earnings/(loss) include charges for restructuring of $7 in 2004, $19 in 2003 and 2002; charges for asbestos of $35 in 2004, $44 in 2004, $30 in 2003; charges for asset impairments and loss/gain on sale of assets of $47 in 2004, $73 in 2003, $247 in 2002; loss/(gain) from early extinguishments of debt of $39 in 2004, $12 in 2003, and ($28) in 2002; and foreign exchange (gains)/losses of ($98) in 2004, ($207) in 2003, $27 in 2002.