EX-12 3 file002.txt COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12 METALDYNE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (DOLLARS IN THOUSANDS)
9 MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31 SEPTEMBER 30 -------------------------------------------------------------------------- -------------- 11/28 - 12/31 1/1/ - 11/27 2002 2001 2000 2000 1999 1998 1997 ------- -------- -------- --------- -------- -------- --------- EARNINGS (LOSS) BEFORE INCOME TAXES AND FIXED CHARGES: Income (loss) from continuing operations before income taxes and cumulative effect of accounting change, net .............. $ 7,280 $(47,930) $(42,600) $ 156,670 $139,470 $144,520 $ 190,290 (Deduct) add equity in undistributed earnings (loss) of less-than-fifty percent owned companies ............................. (90) (8,930) 1,000 (14,210) (9,800) (8,530) (46,030 Add interest on indebtedness, net ...... 74,400 148,560 14,470 78,880 83,470 83,620 36,650 Add amortization of debt expense 4,040 11,620 550 4,490 2,740 3,250 900 Estimated interest factor for rentals ............................... 9,630 9,730 310 2,970 3,710 3,620 2,100 ------- -------- -------- --------- -------- -------- --------- Earnings before income taxes and fixed charges ......................... $95,260 $113,050 $(26,270) $ 228,800 $219,590 $226,480 $ 183,910 ======= ======== ======== ========= ======== ======== ========= FIXED CHARGES: Interest on indebtedness, net ......... $74,400 $148,560 $ 14,460 $ 78,640 $ 83,760 $ 84,080 $ 36,770 Amortization of debt expense .......... 4,040 11,620 550 4,490 2,740 3,250 900 Estimated interest factor for rentals (d) ......................... 9,630 9,730 310 2,970 3,710 3,620 2,100 ------- -------- -------- --------- -------- -------- --------- Total fixed charges ................... 88,070 169,910 15,320 86,100 90,210 90,950 39,770 ------- -------- -------- --------- -------- -------- --------- Preferred stock dividends (a) ......... 2,200 9,750 650 -- -- -- 10,300 ------- -------- -------- --------- -------- -------- --------- Combined fixed charges and preferred stock dividends ........... $90,270 $179,660 $ 15,970 $ 86,100 $ 90,210 $ 90,950 $ 50,070 ======= ======== ======== ========= ======== ======== ========= RATIO OF EARNINGS TO FIXED CHARGES ..... 1.1 --(b) --(b) 2.7 2.4 2.5 4.6 ======= ======== ======== ========= ======== ======== ========= RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ....................... 1.1 --(c) --(c) 2.7 2.4 2.5 3.7 ======= ======== ======== ========= ======== ======== =========
(a) Based on the Company's effective tax rate, represents the amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company and its 50% owned companies. (b) Results of operations for the year ended December 31, 2001 and the 34 days ended December 31, 2000 are inadequate to cover fixed charges by $56,860 and $41,590, respectively (c) Results of operations for the year ended December 31, 2001 and the 34 days ended December 31, 2000 are inadequate to cover fixed charges and preferred stock dividends by $66,160 and $42,240, respectively. (d) Deemed to represent one-third of rental expense on operating leases.