EX-12 7 a06-6864_1ex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS

EXHIBIT 12

 

OWENS-ILLINOIS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND

EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Millions of dollars, except ratios)

 

 

 

Years ended December 31,

 

 

 

2005

 

2004

 

2003

 

Earnings (loss) from continuing operations before income taxes and minority share owners’ interests

 

$

(218.6

)

$

210.3

 

$

(438.0

)

Less: Equity earnings

 

(22.6

)

(27.8

)

(27.1

)

Add: Total fixed charges deducted from earnings

 

479.7

 

489.1

 

440.6

 

Proportional share of pre-tax earnings of 50% owned associates

 

8.9

 

11.0

 

8.1

 

Dividends received from equity investees

 

11.0

 

12.8

 

31.1

 

Earnings available for payment of fixed charges

 

$

258.4

 

$

695.4

 

$

14.7

 

 

 

 

 

 

 

 

 

Fixed charges (including the Company’s proportional share of 50% owned associates):

 

 

 

 

 

 

 

Interest expense

 

$

450.7

 

$

460.0

 

$

415.4

 

Portion of operating lease rental deemed to be interest

 

13.0

 

14.2

 

10.8

 

Amortization of deferred financing costs and debt discount expense

 

16.0

 

14.9

 

14.4

 

Total fixed charges deducted from earnings

 

$

479.7

 

$

489.1

 

$

440.6

 

Preferred stock dividends (increased to assumed pre-tax amount)

 

30.7

 

29.4

 

30.3

 

Combined fixed charges and preferred stock dividends

 

$

510.4

 

$

518.5

 

$

470.9

 

Ratio of earnings to fixed charges

 

 

 

1.4

 

 

 

Deficiency of earnings available to cover fixed charges

 

$

221.3

 

 

 

$

425.9

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

 

1.3

 

 

 

Deficiency of earnings available to cover combined fixed charges and preferred stock dividends

 

252.0

 

 

 

456.2

 

 


 

 

 

Years ended December 31,

 

 

 

2002

 

2001

 

Earnings from continuing operations before income taxes, minority share owners’ interests and cumulative effect of accounting change

 

$

(62.5

)

$

650.9

 

Less: Equity earnings

 

(27.0

)

(18.8

)

Add: Total fixed charges deducted from earnings

 

384.9

 

374.6

 

Proportional share of pre-tax earnings of 50% owned associates

 

13.3

 

10.4

 

Dividends received from less than 50% owned associates

 

29.2

 

18.2

 

Earnings available for payment of fixed charges

 

$

337.9

 

$

1,035.3

 

 

 

 

 

 

 

Fixed charges (including the Company’s proportional share of 50% owned associates):

 

 

 

 

 

Interest expense

 

$

356.1

 

$

345.3

 

Portion of operating lease rental deemed to be interest

 

12.7

 

14.3

 

Amortization of deferred financing costs and debt discount expense

 

16.1

 

15.0

 

 

 

 

 

 

 

Total fixed charges deducted from earnings

 

$

384.9

 

$

374.6

 

 

 

 

 

 

 

Preferred stock dividends (increased to assumed pre-tax amount)

 

30.7

 

36.7

 

 

 

 

 

 

 

Combined fixed charges and preferred stock dividends

 

$

415.6

 

$

411.3

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

 

2.8

 

Deficiency of earnings available to cover fixed charges

 

$

47.0

 

 

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

 

2.5

 

Deficiency of earnings available to cover combined fixed charges and preferred stock dividends

 

77.7