EX-12 2 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, 2006

(in millions, except ratio)

 

Six months ended June 30

    2006  

Earnings:

   

Income from continuing operations before taxes on income

    $ 2,221  

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

      —    

Equity income

      (46 )

Fixed charges

      218  

Distributed income of less than 50%-owned persons

      13  

Amortization of capitalized interest

      11  
        

Total earnings

    $ 2,417  
        

Fixed Charges:

   

Interest expense:

   

Consolidated

    $ 190  

Proportionate share of 50%-owned persons

      3  
        
   $ 193  
        

Amount representative of the interest factor in rents:

   

Consolidated

    $ 24  

Proportionate share of 50%-owned persons

      1  
        
   $ 25  
        

Fixed charges added to earnings

    $ 218  
        

Interest capitalized:

   

Consolidated

    $ 54  

Proportionate share of 50%-owned persons

      —    
        
   $ 54  
        

Preferred stock dividend requirements of majority-owned subsidiaries

      —    
        

Total fixed charges

    $ 272  
        

Ratio of earnings to fixed charges

      8.9