Exhibit 12.1
Albemarle Corporation
Computation of Earnings to Fixed Charges
(In Thousands Except for Ratios)
Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||||||||||
Pro Forma 2004(1) | 2004 | Pro Forma 2003(1) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||||||
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees | $ | 91,073 | $ | 50,803 | $ | 110,923 | $ | 91,443 | $ | 104,501 | $ | 97,841 | $ | 146,162 | $ | 129,760 | ||||||||||||||||
Fixed Charges | ||||||||||||||||||||||||||||||||
Interest expense (before capitalized interest) | 23,655 | 9,352 | 31,591 | 5,530 | 5,395 | 6,309 | 7,190 | 10,357 | ||||||||||||||||||||||||
Portion (1/3) of rents representing interest factor | 4,316 | 4,062 | 5,729 | 5,416 | 4,866 | 4,513 | 4,426 | 4,613 | ||||||||||||||||||||||||
Total fixed charges | 27,971 | 13,414 | 37,320 | 10,946 | 10,261 | 10,822 | 11,616 | 14,970 | ||||||||||||||||||||||||
Amortization of capitalized interest | 881 | 813 | 1,369 | 1,287 | 1,419 | 1,484 | 1,495 | 1,440 | ||||||||||||||||||||||||
Interest capitalized | (998 | ) | (184 | ) | (964 | ) | (154 | ) | (325 | ) | (773 | ) | (1,192 | ) | (1,978 | ) | ||||||||||||||||
Minority interest in consolidated subsidiaries | (3,749 | ) | (3,749 | ) | (2,564 | ) | (2,564 | ) | (2,137 | ) | — | — | — | |||||||||||||||||||
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees plus fixed charges, amortization of capitalized interest, less interest capitalized and minority interest in pre-tax income of subsidiaries that have not incurred fixed charges | $ | 115,178 | $ | 61,097 | $ | 147,663 | $ | 100,958 | $ | 113,719 | $ | 109,374 | $ | 158,081 | $ | 144,192 | ||||||||||||||||
Ratio of earnings to fixed charges | 4.1 x | 4.6 x | 3.9 x | 9.2 x | 11.1 x | 10.1 x | 13.6 x | 9.6 x | ||||||||||||||||||||||||
(1) | Reflects the acquisition by Albemarle Corporation (the “Company”) of the refinery catalysts business of Akzo Nobel N.V. on July 31, 2004, the completion of the financings related to the acquisition, the refinancing of the Company’s then-existing credit agreement and the payment of related fees and expenses as if such transactions had occurred on January 1, 2003. |