EX-12.1 5 y63600exv12w1.txt STATEMENT OF RATIOS OF EARNINGS TO FIXED CHARGES . . . Exhibit 12.1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS (MILLIONS OF DOLLARS)
YEARS ENDED DECEMBER 31, ------------------------ 2002 2001* 2000* 1999* 1998* ---- ----- ----- ----- ----- EARNINGS: Income (loss) before taxes, minority interests, equity in net earnings (losses) of affiliated companies, extraordinary item and cumulative effect of accounting change (393.7) (246.6) 84.9 $ (472.7) $ 329.9 Amortization of previously capitalized interest expense 7.1 7.8 7.5 7.6 8.0 -------- -------- -------- -------- -------- Earnings (loss) before fixed charges (386.6) (238.8) 92.4 (465.1) 337.9 Gross fixed charges $ 194.1 $ 235.0 $ 226.0 $ 126.2 $ 101.0 Less interest capitalized -- (1.6) (4.5) (0.2) (1.9) -------- -------- -------- -------- -------- Earnings (loss) $ (192.5) $ (5.4) $ 313.9 $ (339.1) $ 437.0 ======== ======== ======== ======== ======== FIXED CHARGES: Interest expense Expensed 161.8 215.7 209.6 116.8 90.6 Capitalized -- 1.6 4.5 0.2 1.9 -------- -------- -------- -------- -------- 161.8 217.3 214.1 117.0 92.5 Amortization of debt expenses, premiums and discounts 25.2 10.2 2.2 3.4 3.9 Portion of rental expense representative of interest factor 7.1 7.5 9.7 5.8 4.6 -------- -------- -------- -------- -------- Total fixed charges 194.1 235.0 226.0 126.2 101.0 Preferred stock dividends 9.1 N/A N/A N/A N/A -------- -------- -------- -------- -------- Combined fixed charges and preferred stock dividend requirements $ 203.2 $ 235.0 $ 226.0 $ 126.2 $ 101.0 ======== ======== ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES -- (A) -- (C) 1.4 -- (D) 4.3 ======== ======== ======== ======== ======== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS -- (B) N/A N/A N/A N/A ======== ======== ======== ======== ======== SUPPLEMENTAL INFORMATION TO INCORPORATE THE EFFECT OF SPECIAL ITEMS AND PROVISIONS, NET: EARNINGS: Income (loss) before taxes, minority interests, equity in net earnings (losses) of affiliated companies, extraordinary item and cumulative effect of accounting change $ (393.7) $ (246.6) $ 84.9 $ (472.7) $ 329.9 Special items and provisions, net (E) 236.4 (40.6) 51.8 455.4 (190.9) Amortization of previously capitalized interest expense 7.1 7.8 7.5 7.6 8.0 -------- -------- -------- -------- -------- Earnings (loss) before fixed charges (150.2) (279.4) 144.2 (9.7) 147.0 Gross fixed charges 194.1 235.0 226.0 126.2 101.0 Less interest capitalized -- (1.6) (4.5) (0.2) (1.9)
YEARS ENDED DECEMBER 31, ------------------------ 2002 2001* 2000* 1999* 1998* ---- ----- ----- ----- ----- Earnings (loss) $ 43.9 $ (46.0) $ 365.7 $ 116.3 $ 246.1 ======== ======== ======== ======== ======== FIXED CHARGES: Interest expense Expensed 161.8 215.7 209.6 116.8 90.6 Capitalized -- 1.6 4.5 0.2 1.9 -------- -------- -------- -------- -------- 161.8 217.3 214.1 117.0 92.5 Amortization of debt expenses, premiums and discounts 25.2 10.2 2.2 3.4 3.9 Portion of rental expense representative of interest factor 7.1 7.5 9.7 5.8 4.6 -------- -------- -------- -------- -------- Total fixed charges 194.1 235.0 226.0 126.2 101.0 Preferred stock dividends 9.1 N/A N/A N/A N/A -------- -------- -------- -------- -------- Combined fixed charges and preferred stock dividend requirements $ 203.2 $ 235.0 $ 226.0 $ 126.2 $ 101.0 ======== ======== ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES BEFORE SPECIAL ITEMS 0.2 -- (F) 1.6 0.9 2.4 ======== ======== ======== ======== ======== RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS BEFORE SPECIAL ITEMS 0.2 N/A N/A N/A N/A ======== ======== ======== ======== ========
* The Company restated its previously reported consolidated financial statements to reflect certain adjustments as discussed in our Annual Report on Form 10-K for 2002. (A) Due to the loss recorded in 2002, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $386.6 million to achieve a coverage of 1:1 in 2002. (B) Due to the loss recorded in 2002, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $395.7 million to achieve a coverage of 1:1 in 2002. (C) Due to the loss recorded in 2001, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $240.4 million to achieve a coverage of 1:1 in 2001. (D) 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 $465.3 million to achieve a coverage of 1:1 in 1999. (E) As previously reported in the consolidated financial statements of the Company for the corresponding period.