EX-12.1 8 y50328s3ex12-1.txt STATEMENT OF TARIOS OF EARNINGS TO FIXED CHARGES 1 Exhibit 12.1 Computation of Ratio of Earnings to Fixed Charges (Millions of dollars)
Six Months Ended Three Months Ended June 30, March 31, 2001 2001 -------- -------- EARNINGS: Income (loss) before taxes, minority interests and equity in earnings (losses) of affiliated companies and cumulative effect of accounting change (76.5) (14.7) Amortization of previously capitalized interest expense 2.1 1.9 -------- -------- Earnings before fixed charges (74.4) (12.8) Gross fixed charges $ 112.9 $ 55.3 Less interest capitalized (0.6) (0.6) -------- -------- Earnings $ 37.9 $ 41.9 ======== ======== FIXED CHARGES: Interest expense Expensed 106.5 51.8 Capitalized 0.6 0.6 -------- -------- 107.1 52.4 Amortization of debt expenses, debt premiums and discounts 1.0 0.5 Portion of rental expense representative of interest factor 4.8 2.4 -------- -------- $ 112.9 $ 55.3 ======== ======== -------- -------- RATIO OF EARNINGS TO FIXED CHARGES (D) (C) ======== ======== SUPPLEMENTAL INFORMATION TO INCORPORATE THE EFFECT OF NON-RECURRING ITEMS EARNINGS: Income (loss) before taxes, minority interests and equity in earnings (losses) of affiliated companies and cumulative effect of accounting change $ (76.5) $ (14.7) Net non-recurring charges (gains) (B) (21.4) (28.9) Amortization of previously capitalized interest expense 2.1 1.9 -------- -------- Earnings before fixed charges (95.8) (41.7) Gross fixed charges 112.9 55.3 Less interest capitalized (0.6) (0.6) -------- -------- Earnings $ 16.5 $ 13.0 ======== ======== FIXED CHARGES: Interest expense Expensed 106.5 51.8 Capitalized 0.6 0.6 -------- -------- 107.1 52.4 Amortization of debt expenses, debt premiums and discounts 1.0 0.5 Portion of rental expense representative of interest factor 4.8 2.4 -------- -------- $ 112.9 $ 55.3 ======== ======== RATIO OF EARNINGS TO FIXED CHARGES AFTER -------- -------- INCORPORATING NON-RECURRING ITEMS (F) (E) ======== ========
Year ended December 31, 2000 1999 1998 1997 1996 1995 -------------------------------------------------------------------- EARNINGS: Income (loss) before taxes, minority interests and equity in earnings (losses) of affiliated companies and cumulative effect of accounting change 53.7 $ (426.7) $ 337.0 $ 581.9 $ 687.5 $1,075.7 Amortization of previously capitalized interest expense 7.5 7.6 8.0 7.2 7.0 6.7 -------------------------------------------------------------------- Earnings before fixed charges 61.2 (419.1) 345.0 589.1 694.5 1,082.4 Gross fixed charges $ 226.0 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9 Less interest capitalized (4.5) (0.2) (1.9) (11.7) (1.9) (3.2) -------------------------------------------------------------------- Earnings $ 282.7 $ (293.1) $ 444.1 $ 657.6 $ 765.6 $1,150.1 ==================================================================== FIXED CHARGES: Interest expense Expensed 209.6 116.8 90.6 55.8 62.3 58.1 Capitalized 4.5 0.2 1.9 11.7 1.9 3.2 -------------------------------------------------------------------- 214.1 117.0 92.5 67.5 64.2 61.3 Amortization of debt expenses, debt premiums and discounts 2.2 3.4 3.9 6.5 3.6 3.3 Portion of rental expense representative of interest factor 9.7 5.8 4.6 6.2 5.2 6.3 -------------------------------------------------------------------- $ 226.0 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9 ==================================================================== -------------------------------------------------------------------- RATIO OF EARNINGS TO FIXED CHARGES 1.3 (A) 4.4 8.2 10.5 16.2 ==================================================================== SUPPLEMENTAL INFORMATION TO INCORPORATE THE EFFECT OF NON-RECURRING ITEMS EARNINGS: Income (loss) before taxes, minority interests and equity in earnings (losses) of affiliated companies and cumulative effect of accounting change $ 53.7 $ (426.7) $ 337.0 $ 581.9 $ 687.5 $1,075.7 Net non-recurring charges (gains) (B) 59.6 455.4 (190.9) 45.9 10.0 (26.8) Amortization of previously capitalized interest expense 7.5 7.6 8.0 7.2 7.0 6.7 -------------------------------------------------------------------- Earnings before fixed charges 120.8 36.3 154.1 635.0 704.5 1,055.6 Gross fixed charges 226.0 126.2 101.0 80.2 73.0 70.9 Less interest capitalized (4.5) (0.2) (1.9) (11.7) (1.9) (3.2) -------------------------------------------------------------------- Earnings $ 342.3 $ 162.3 $ 253.2 $ 703.5 $ 775.6 $1,123.3 ==================================================================== FIXED CHARGES: Interest expense Expensed 209.6 116.8 90.6 55.8 62.3 58.1 Capitalized 4.5 0.2 1.9 11.7 1.9 3.2 -------------------------------------------------------------------- 214.1 117.0 92.5 67.5 64.2 61.3 Amortization of debt expenses, debt premiums and discounts 2.2 3.4 3.9 6.5 3.6 3.3 Portion of rental expense representative of interest factor 9.7 5.8 4.6 6.2 5.2 6.3 -------------------------------------------------------------------- $ 226.0 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9 ==================================================================== RATIO OF EARNINGS TO FIXED CHARGES AFTER -------------------------------------------------------------------- INCORPORATING NON-RECURRING ITEMS 1.5 1.3 2.5 8.8 10.6 15.8 ====================================================================
(A) Due to the loss recorded in 1999, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $419.3 million to achieve a coverage of 1:1 in 1999. (B) As previously reported in the consolidated financial statements of the Company for the corresponding period. (C) Fixed charges exceeded earnings for the three month period ended March 31, 2001 therefore the ratio coverage was less than 1:1. The Company must generate additional earnings of $13.4 million to achieve a coverage of 1:1. (D) Fixed charges exceeded earnings for the six month period ended June 30, 2001 therefore the ratio coverage was less than 1:1. The Company must generate additional earnings of $75.0 million to achieve a coverage of 1:1. (E) Fixed charges exceeded earnings for the six month period ended June 30, 2001 therefore the ratio coverage was less than 1:1. The Company must generate additional earnings of $42.3 million to achieve a coverage of 1:1. (F) Fixed charges exceeded earnings for the six month period ended June 30, 2001 therefore the ratio coverage was less than 1:1. The Company must generate additional earnings of $96.4 million to achieve a coverage of 1:1.