EX-12 3 exh12.htm EXH. 12 CALC. OF RATIO EARNINGS TO FIXED CHARGES

Exhibit 12

 

TEREX CORPORATION

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(amounts in millions)

 

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2006

 

2005

 

2006

 

2005

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

184.2

 

$

114.0

 

$

307.7

 

$

161.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Minority interest in losses of consolidated subsidiaries

 

 

-

 

 

-

 

 

-

 

 

-

Undistributed (income) loss of less than 50% owned investments

 

 

-

 

 

-

 

 

-

 

 

-

Distributions from less than 50% owned investments

 

 

-

 

 

-

 

 

-

 

 

-

Fixed charges

 

 

39.7

 

 

29.4

 

 

70.2

 

 

58.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

223.9

 

$

143.4

 

$

377.9

 

$

220.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, including preferred accretion:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, including debt discount amortization

 

$

31.6

 

$

23.8

 

$

56.3

 

$

47.4

Accretion of redeemable convertible preferred stock

 

 

-

 

 

-

 

 

-

 

 

-

Amortization of debt issuance costs

 

 

2.3

 

 

0.8

 

 

3.2

 

 

1.7

Portion of rental expense representative of interest factor (assumed to be 33%)

 

 

5.8

 

 

4.8

 

 

10.7

 

 

9.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

$

39.7

 

$

29.4

 

$

70.2

 

$

58.9

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

5.6x

 

 

4.9x

 

 

5.4x

 

 

3.7x

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of earnings deficiency for coverage of fixed charges

 

 

$

-

 

 

$

-

 

$

-

 

$

-