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

EXHIBIT 12

Alcoa and subsidiaries

Computation of Ratio of Earnings to Fixed Charges

For the nine months ended September 30, 2006

(in millions, except ratio)

 

Nine months ended September 30,

    2006  

Earnings:

   

Income from continuing operations before taxes on income

    $ 3,077  

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

      —    

Equity income

      (61 )

Fixed charges

      332  

Distributed income of less than 50%-owned persons

      27  

Amortization of capitalized interest

      16  
        

Total earnings

    $ 3,391  
        

Fixed Charges:

   

Interest expense:

   

Consolidated

    $ 291  

Proportionate share of 50%-owned persons

      4  
        
   $ 295  
        

Amount representative of the interest factor in rents:

   

Consolidated

    $ 36  

Proportionate share of 50%-owned persons

      1  
        
   $ 37  
        

Fixed charges added to earnings

    $ 332  
        

Interest capitalized:

   

Consolidated

    $ 89  

Proportionate share of 50%-owned persons

      1  
        
   $ 90  
        

Preferred stock dividend requirements of majority-owned subsidiaries

      —    
        

Total fixed charges

    $ 422  
        

Ratio of earnings to fixed charges

      8.0  
        

 

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