EX-12 3 file002.txt COMPUTATION OF RATIO TO EARNINGS EXHIBIT 12 METALDYNE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (DOLLARS IN THOUSANDS)
3 MONTHS ENDED YEAR ENDED FOR THE YEARS ENDED DECEMBER 31 MARCH 30 DECEMBER 29, ------------------------------------------------------------- -------------- ------------ 11/28 -- 12/31 1/1/ -- 11/27 2003 2002 2001 2000 2000 1999 1998 -------------- ------------ ---------- -------------- -------------- -------- --------- EARNINGS (LOSS) BEFORE INCOME TAXES AND FIXED CHARGES: Income (loss) from continuing operations before income taxes and cumulative effect of accounting change, net ........................ $(11,620) $ 4,970 $(47,930) $(42,600) $156,670 $139,470 $144,520 (Deduct) add equity in undistributed earnings (loss) of less-than-fifty percent owned companies .............. 2,630 1,410 (8,930) 1,000 (14,210) (9,800) (8,530) Add interest on indebtedness, net ...... 17,880 91,060 148,560 14,470 78,880 83,470 83,620 Add amortization of debt expense ....... 580 4,770 11,620 550 4,490 2,740 3,250 Estimated interest factor for rentals .. 3,060 12,460 9,730 310 2,970 3,710 3,620 -------- -------- -------- -------- -------- -------- -------- Earnings before income taxes and fixed charges ........................ $ 12,530 $114,670 $113,050 $(26,270) $228,800 $219,590 $226,480 ======== ======== ======== ======== ======== ======== ======== FIXED CHARGES: Interest on indebtedness, net ........ $ 17,880 $ 91,060 $148,560 $ 14,460 $ 78,640 $ 83,760 $ 84,080 Amortization of debt expense ......... 580 4,770 11,620 550 4,490 2,740 3,250 Estimated interest factor for rentals (d) ........................ 3,060 12,460 9,730 310 2,970 3,710 3,620 -------- -------- -------- -------- -------- -------- -------- Total fixed charges .................. 21,520 108,290 169,910 15,320 86,100 90,210 90,950 Preferred stock dividends (a) ........ 2,750 29,630 9,750 650 -- -- -- -------- -------- -------- -------- -------- -------- -------- Combined fixed charges and preferred stock dividends .......... $ 24,270 $137,920 $179,660 $ 15,970 $ 86,100 $ 90,210 $ 90,950 ======== ======== ======== ======== ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES ..... --(b) 1.1 --(b) --(b) 2.7 2.4 2.5 ======== ======== ======== ======== ======== ======== ======== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS. --(c) --(c) --(c) --(c) 2.7 2.4 2.5 ======== ======== ======== ======== ======== ======== ========
--------- (a) Based on the Company's effective tax rate, represents the amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company and its 50% owned companies. (b) Results of operations for the three months ended March 30, 2003, year ended December 31, 2001 and the 34 days ended December 31, 2000 are inadequate to cover fixed charges by $8,990, $56,860 and $41,590, respectively (c) Results of operations for the three months ended March 30, 2003, years ended December 29, 2002 and December 31, 2001 and the 34 days ended December 31, 2000 are inadequate to cover fixed charges and preferred stock dividends by $11,740, $23,250, $66,610 and $42,240, respectively. (d) Deemed to represent one-third of rental expense on operating leases.