Exhibit 12.1
NewMarket Corporation and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands, except ratios)
| Years Ended December 31, | ||||||||||||||||
| 2005 | 2004 | 2003 | 2002 | 2001 (a) | ||||||||||||
Earnings: | ||||||||||||||||
Pretax income from continuing operations before discontinued operations and cumulative effect of accounting changes | $ | 56,952 | $ | 44,630 | $ | 29,342 | $ | 13,269 | $ | (152,691 | ) | |||||
Interest expense (net) | 16,849 | 18,254 | 21,128 | 25,574 | 32,808 | |||||||||||
Portion of rent expense representative of interest factor | 5,636 | 6,438 | 5,650 | 4,738 | 5,687 | |||||||||||
Amortization of capitalized interest | 1,144 | 1,515 | 1,498 | 1,547 | 1,586 | |||||||||||
Adjusted pretax income from continuing operations | $ | 80,581 | $ | 70,837 | $ | 57,618 | $ | 45,128 | $ | (112,610 | ) | |||||
Fixed Charges: | ||||||||||||||||
Interest expense (before deducting capitalized interest) | $ | 16,970 | $ | 18,441 | $ | 21,236 | $ | 25,687 | $ | 32,829 | ||||||
Portion of rent expense representative of interest factor | 5,636 | 6,438 | 5,650 | 4,738 | 5,687 | |||||||||||
Total fixed charges | $ | 22,606 | $ | 24,879 | $ | 26,886 | $ | 30,425 | $ | 38,516 | ||||||
Ratio of earnings to fixed charges | 3.6 | 2.8 | 2.1 | 1.5 | N/A | |||||||||||
| (a) | Due to a loss for the year ended December 31, 2001, the coverage ratio was less than 1:1. The Company needed to generate an additional $151.1 million in earnings to achieve a coverage ratio of 1:1. |