Exhibit 12
CELANESE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Successor | Predecessor | |||||||||||||||||
Six Months Ended June 30, 2005 | Three Months Ended June 30, 2005 | Three Months Ended June 30,2004 | Three Months Ended March 31, 2004 | |||||||||||||||
Earnings: | ||||||||||||||||||
Earnings (loss) from continuing operations before tax and minority interest | 146 | 123 | (104 | ) | 72 | |||||||||||||
Less: | ||||||||||||||||||
Equity in net earnings of affiliates | (27 | ) | (12 | ) | (18 | ) | (12 | ) | ||||||||||
Plus : | ||||||||||||||||||
Income distributions from equity investments | 46 | 10 | 6 | 15 | ||||||||||||||
Amortization of capitalized interest | 3 | 1 | 2 | 2 | ||||||||||||||
Total fixed charges | 277 | 84 | 137 | 16 | ||||||||||||||
Total earnings as defined before combined fixed charges | 445 | 206 | 23 | 93 | ||||||||||||||
Fixed charges: | ||||||||||||||||||
Interest expense | 244 | 68 | 130 | 6 | ||||||||||||||
Capitalized interest | 2 | 1 | 1 | 3 | ||||||||||||||
Estimated interest portion of rent expense | 12 | 6 | 6 | 7 | ||||||||||||||
Cumulative undeclared and declared preferred stock dividends | 4 | 2 | — | — | ||||||||||||||
Guaranteed payment to minority shareholders | 15 | 7 | — | — | ||||||||||||||
Total combined fixed charges | 277 | 84 | 137 | 16 | ||||||||||||||
Ratio of earnings to combined fixed charges(1) | 1.6 | 2.5 | 0.2 | 5.8 | ||||||||||||||
(1) | Earnings were insufficient to cover combined fixed charges by $114 million for the three months ended June 30, 2004. |