Exhibit 12.1
PolyOne Corporation
Ratio of Earnings to Fixed Charges
(Dollars in millions)
Ratio of Earnings to Fixed Charges
(Dollars in millions)
Three Months Ended | ||||||||||||||||||||||||||||
Year Ended December 31, | March 31, | |||||||||||||||||||||||||||
2003 (1) | 2004 | 2005 | 2006 | 2007 (2) | 2007 | 2008 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income (loss) before income taxes and discontinued operations | $ | (122.4 | ) | $ | 42.0 | $ | 69.8 | $ | 120.3 | $ | (32.4 | ) | $ | 11.2 | $ | 9.7 | ||||||||||||
(Income) loss from equity affiliates and minority interest | (34.3 | ) | (65.4 | ) | (79.9 | ) | (112.0 | ) | (27.7 | ) | (6.5 | ) | (8.1 | ) | ||||||||||||||
(156.7 | ) | (23.4 | ) | (10.1 | ) | 8.3 | (60.1 | ) | 4.7 | 1.6 | ||||||||||||||||||
Share of distributed earnings in equity affiliates | 24.7 | 51.5 | 67.4 | 97.7 | 37.6 | 0.2 | 0.9 | |||||||||||||||||||||
Add, fixed charges | 76.0 | 83.6 | 76.0 | 78.8 | 71.7 | 17.2 | 11.2 | |||||||||||||||||||||
Add, amortization of capitalized interest | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | – | – | |||||||||||||||||||||
Subtract, interest capitalized | – | – | – | – | (0.1 | ) | – | – | ||||||||||||||||||||
Net earnings (loss) | $ | (55.8 | ) | $ | 111.9 | $ | 133.5 | $ | 185.0 | $ | 49.3 | $ | 22.1 | $ | 13.7 | |||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 66.6 | $ | 72.1 | $ | 68.1 | $ | 66.5 | $ | 51.4 | $ | 15.3 | $ | 9.2 | ||||||||||||||
Plus: interest capitalized | – | – | – | – | 0.1 | – | – | |||||||||||||||||||||
Premium on indebtedness | – | 3.3 | – | 4.4 | 12.8 | – | – | |||||||||||||||||||||
Interest portion of rentals | 2.8 | 2.0 | 2.2 | 2.6 | 2.6 | 0.7 | 0.9 | |||||||||||||||||||||
Interest expense relating to guaranteed debt of equity affiliates | 6.6 | 6.2 | 5.7 | 5.3 | 4.8 | 1.2 | 1.1 | |||||||||||||||||||||
Fixed charges | $ | 76.0 | $ | 83.6 | $ | 76.0 | $ | 78.8 | $ | 71.7 | $ | 17.2 | $ | 11.2 | ||||||||||||||
Ratio of earnings to fixed charges | — | 1.3x | 1.8x | 2.3x | — | 1.3x | 1.2x |
(1) Earnings for 2003 were insufficient to cover fixed charges by $131.8 million. Accordingly, such ratio is not presented.
(2) Earnings for 2007 were insufficient to cover fixed charges by $22.4 million. Accordingly, such ratio is not presented.
(2) Earnings for 2007 were insufficient to cover fixed charges by $22.4 million. Accordingly, such ratio is not presented.