EX-12.1 44 a2149717zex-12_1.htm EXHIBIT 12.1

 

Exhibit 12.1

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED)
(in millions)

 

 

 

 

 

 

 

 

Predecessor

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

 

 

 

 

 

 

 

Celanese

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Parent Guarantor Pro Forma

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

 

Nine Months Ended September 30,

 

Three Months Ended March 31,

 

 

Six Months Ended September
30,

 

Year Ended December
31,

 

Nine Months Ended September
30,

 

 

 

1999

 

2000

 

2001

 

2002

 

2003

 

2003

 

2004

 

 

2004

 

2003

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income from continuing operations

 

$(647

)

$185

 

$(419

)

$184

 

$203

 

$206

 

$ 80

 

 

$(84

)

$ 203

 

$ (4

)

Change in interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(165

)

24

 

Pro forma pre-tax income from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38

 

20

 

Loss:
(Income) loss from equity investees, net

 

(7

)

(18

)

(12

)

(21

)

(35

)

(29

)

(12

)

 

(35

)

(35

)

(47

)

Plus:
Income distributions from equity investments

 

7

 

12

 

19

 

61

 

23

 

21

 

15

 

 

20

 

23

 

35

 

Amortization of capitalized interest

 

8

 

9

 

9

 

10

 

14

 

10

 

2

 

 

4

 

14

 

6

 

Fixed charges

 

150

 

103

 

104

 

89

 

85

 

65

 

16

 

 

197

 

250

 

189

 

Total “earnings” as defined before fixed charges

 

$(489

)

$291

 

$(299

)

$323

 

$290

 

$273

 

$101

 

 

$102

 

$ 290

 

$203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$ 115

 

$ 68

 

$ 72

 

$ 55

 

$ 49

 

$ 36

 

$ 6

 

 

$181

 

$ 214

 

$163

 

Capitalized interest

 

14

 

12

 

4

 

6

 

3

 

5

 

3

 

 

2

 

3

 

5

 

Estimated interest portion of rent expense(1)

 

21

 

23

 

28

 

28

 

33

 

24

 

7

 

 

14

 

33

 

21

 

Total fixed charges

 

$ 150

 

$103

 

$ 104

 

$ 89

 

$ 85

 

$ 65

 

$ 16

 

 

$197

 

$ 250

 

$189

 

Ratio of earnings to fixed charges(2)

 

—

 

2.8

 x

—

 

3.6

 x

3.4

 x

4.2

 x

6.2

 x

 

—

 

1.2

 x

1.1

 x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)   The estimated interest portion of rental expense is based on the amount of rental expense including discontinued operations for 1999 and 2000 and excluding discontinued operations for subsequent periods.

 

(2)   Earnings were insufficient to cover fixed charges by $639 million for the year ended December 31, 1999, $403 million for the year ended December 31, 2001 and $95 million for the six months ended September 30, 2004.