EX-12.1 13 ex12-1.txt EX-12.1 1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 (MILLIONS OF DOLLARS)
Six Months Ended June 30, Year ended December 31, 2000 1999 1998 1997 1996 1995 ---- ---- ---- ---- ---- ---- EARNINGS: Income (loss) before taxes, minority interests $ (11.7) $ (426.7) $ 337.0 $ 581.9 $ 687.5 $1,075.7 and equity in earnings (losses) of affiliated companies and cumulative effect of accounting change Amortization of previously capitalized interest expense 3.7 7.6 8.0 7.2 7.0 6.7 -------- -------- -------- -------- -------- -------- Earnings before fixed charges (8.0) (419.1) 345.0 589.1 694.5 1,082.4 Gross fixed charges $ 114.0 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9 Less interest capitalized (1.3) (0.2) (1.9) (11.7) (1.9) (3.2) -------- -------- -------- -------- -------- -------- Earnings $ 104.7 $ (293.1) $ 444.1 $ 657.6 $ 765.6 $1,150.1 ======== ======== ======== ======== ======== ======== FIXED CHARGES: Interest expense Expensed 106.3 116.8 90.6 55.8 62.3 58.1 Capitalized 1.3 0.2 1.9 11.7 1.9 3.2 -------- -------- -------- -------- -------- -------- 107.6 117.0 92.5 67.5 64.2 61.3 Amortization of debt expenses, debt premiums and discounts 1.8 3.4 3.9 6.5 3.6 3.3 Portion of rental expense representative of interest factor 4.6 5.8 4.6 6.2 5.2 6.3 -------- -------- -------- -------- -------- -------- $ 114.0 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9 ======== ======== ======== ======== ======== ======== -------- -------- -------- -------- -------- -------- RATIO OF EARNINGS TO FIXED CHARGES (A) (B) 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 $ (11.7) $ (426.7) $ 337.0 $ 581.9 $ 687.5 $1,075.7 and equity in earnings (losses) of affiliated companies and cumulative effect of accounting change Net non-recurring charges (gains) (C) 54.1 455.4 (190.9) 45.9 10.0 (26.8) Amortization of previously capitalized interest expense 3.7 7.6 8.0 7.2 7.0 6.7 -------- -------- -------- -------- -------- -------- Earnings before fixed charges 46.1 36.3 154.1 635.0 704.5 1,055.6 Gross fixed charges 114.0 126.2 101.0 80.2 73.0 70.9 Less interest capitalized (1.3) (0.2) (1.9) (11.7) (1.9) (3.2) -------- -------- -------- -------- -------- -------- Earnings $ 158.8 $ 162.3 $ 253.2 $ 703.5 $ 775.6 $1,123.3 ======== ======== ======== ======== ======== ======== FIXED CHARGES: Interest expense Expensed 106.3 116.8 90.6 55.8 62.3 58.1 Capitalized 1.3 0.2 1.9 11.7 1.9 3.2 -------- -------- -------- -------- -------- -------- 107.6 117.0 92.5 67.5 64.2 61.3 Amortization of debt expenses, debt premiums and discounts 1.8 3.4 3.9 6.5 3.6 3.3 Portion of rental expense representative of interest factor 4.6 5.8 4.6 6.2 5.2 6.3 -------- -------- -------- -------- -------- -------- $ 114.0 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9 ======== ======== ======== ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES AFTER -------- -------- -------- -------- -------- -------- INCORPORATING NON-RECURRING ITEMS 1.4 1.3 2.5 8.8 10.6 15.8 ======== ======== ======== ======== ======== ========
(A) Due to the loss recorded for the six-month period ended June 30, 2000, the ratio coverage was less than 1:1. Phelps Dodge would have needed to generate additional earnings of $9.3 million in order to achieve a coverage of 1:1 for the six-month period ended June 30, 2000. (B) 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. (C) As previously reported in the consolidated financial statements of the Company for the corresponding period.