EX-12 5 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges
Alcoa and subsidiaries    EXHIBIT 12

 

Computation of Ratio of Earnings to Fixed Charges

For the six months ended June 30, 2004

(in millions, except ratio)

 

Six months ended June 30

    2004
  

Earnings:

         

Income from continuing operations before taxes on income

    $ 1,228  

Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges

      —    

Equity income

      (71 )

Fixed charges

      156  

Distributed income of less than 50%-owned persons

      18  

Amortization of capitalized interest

      13  
    

Total earnings

    $ 1,344  
    

Fixed Charges:

         

Interest expense:

         

Consolidated

    $ 133  

Proportionate share of 50%-owned persons

      1  
    
     $ 134  
    

Amount representative of the interest factor in rents:

         

Consolidated

    $ 21  

Proportionate share of 50%-owned persons

      1  
    
     $ 22  
    

Fixed charges added to earnings

    $ 156  
    

Interest capitalized:

         

Consolidated

    $ 13  

Proportionate share of 50%-owned persons

      —    
    
     $ 13  
    

Preferred stock dividend requirements of majority-owned subsidiaries

      —    
    

Total fixed charges

    $ 169  
    

Ratio of earnings to fixed charges

      7.9