EX-12 11 l35130aexv12.htm EX-12 EX-12
EXHIBIT 12
FERRO CORPORATION AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
                                         
    2008     2007     2006     2005     2004  
    (Dollars in thousands)  
Earnings:
                                        
(Loss) income before income taxes
   $ (56,537 )   $ (117,518 )   $ 17,803     $ 21,124     $ 28,507  
Fixed charges
     54,383       63,381       66,657       47,586       42,993  
Minority interest & affiliate earnings
     381       (420 )     (605 )     (603 )     (196 )
Dividends from equity investees
     721       1,485       1,590       1,069       5,292  
Depreciation on interest capitalized
     133       562       502       389       436  
Less: Interest capitalization
     (1,761 )     (2,271 )     (1,136 )     (71 )     (214 )
 
                              
Total earnings
   $ (2,680 )   $ (54,781 )   $ 84,811     $ 69,494     $ 76,818  
 
                              
 
                                        
Combined fixed charges and preferred stock dividends:
                                        
Interest expense, including amortization of discounts and capitalized expenses on debt
   $ 51,671     $ 59,690     $ 64,427     $ 46,919     $ 41,993  
Interest capitalization
     1,761       2,271       1,136       71       214  
Interest portion of rental expense
     951       1,420       1,094       596       786  
 
                              
Total fixed charges
     54,383       63,381       66,657       47,586       42,993  
Preferred stock dividends
     923       1,222       1,445       2,023       1,869  
 
                              
Combined fixed charges and preferred stock dividends
   $ 55,306     $ 64,603     $ 68,102     $ 49,609     $ 44,862  
 
                              
 
                                        
Ratio of earnings to fixed charges:
                                        
Total earnings
   $ (2,680 )   $ (54,781 )   $ 84,811     $ 69,494     $ 76,818  
Divided by: Total fixed charges
   $ 54,383     $ 63,381     $ 66,657     $ 47,586     $ 42,993  
 
                              
Ratio of earnings to fixed charges
     —       —       1.27       1.46       1.79  
 
                              
 
                                        
Ratio of earnings to combined fixed charges and preferred stock dividends:
                                        
Total earnings
   $ (2,680 )   $ (54,781 )   $ 84,811     $ 69,494     $ 76,818  
Divided by: Combined fixed charges and preferred stock dividends
   $ 55,306     $ 64,603     $ 68,102     $ 49,609     $ 44,862  
 
                              
Ratio of earnings to combined fixed charges and preferred stock dividends
     —       —       1.25       1.40       1.71  
 
                              
Note:
     Total earnings were insufficient to cover the fixed charges for the years ended 2008 and 2007 by $57.1 million and $118.2 million, respectively, and were insufficient to cover the combined fixed charges for the years ended 2008 and 2007 by $58.0 million and $119.4 million, respectively. The insufficient earnings were primarily due to the non-cash impairment charges of $80.2 million and $128.7 million in the years ended 2008 and 2007, respectively. Accordingly, such ratios are not presented.
     Fixed charges are equal to interest expense (including amortization of deferred financing costs and costs associated with the Company’s asset securitization program), plus the portion of rent expense estimated to represent interest. Costs associated with the Company’s asset securitization programs were $5.8 million, $7.0 million, $5.6 million, $3.9 million and $2.4 million in the years ended December 31, 2008, 2007, 2006, 2005 and 2004, respectively.