EXHIBIT 12.1
FOSTER WHEELER LTD.
STATEMENT OF COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES
(in thousands of dollars)
Unaudited
| | | Three Months Ended | |
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| | | March 26, 2004 | | March 28, 2003 | |
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| Earnings: | | | | | | | |
| Net loss | | $ | (4,298 | ) | $ | (19,820 | ) |
| Taxes on income | | | 13,444 | | | 7,458 | |
| Total fixed charges | | | 27,525 | | | 23,964 | |
| Capitalized interest | | | — | | | (308 | ) |
| Capitalized interest amortized | | | 572 | | | 568 | |
| Equity loss/(earnings) of non-consolidated affiliated companies accounted for by the equity method, net of dividends | | | 4,437 | | | (3,506 | ) |
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| | | $ | 41,680 | | $ | 8,356 | |
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| Fixed Charges: | | | | | | | |
| Interest expense* | | $ | 25,432 | | $ | 21,794 | |
| Capitalized interest | | | — | | | 308 | |
| Imputed interest on non-capitalized lease payment** | | | 2,093 | | | 1,862 | |
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| | | $ | 27,525 | | $ | 23,964 | |
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| Ratio of Earnings to Fixed Charges | | | 1.51 | | | — | *** |
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| * Includes interest expense on subordinated deferrable interest debentures of $4,792 in 2004 and mandatorily redeemable preferred security distributions of subsidiary trust of $4,372 in 2003. |
| ** The percent of rent included in the calculation is a reasonable approximation of the interest factor. |
| *** Earnings are inadequate to cover fixed charges. The coverage deficiency is $15,608 for the first quarter of 2003. |
Note: There were no preferred shares outstanding during the period indicated and, therefore, the consolidated ratio of earnings to fixed charges and combined fixed charges and preferred share dividend requirements would have been the same as the consolidated ratio of earnings to fixed charges and combined fixed charges for the period indicated.
