Exhibit 12
Meritor, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Amounts in millions, except the ratios)
| Three months ended | ||||||||||||||||||||||||||||
| December 31, | Fiscal Year ended September 30, | |||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||
| Earnings Available for Fixed Charges (A): | ||||||||||||||||||||||||||||
| Pre-tax income(loss) from continuing operations | $ | 11 | $ | 18 | $ | 159 | $ | 76 | $ | (52 | ) | $ | 131 | $ | (41 | ) | ||||||||||||
| Less: | ||||||||||||||||||||||||||||
| Equity in earnings of affiliates, net of dividends | (11 | ) | (9 | ) | (25 | ) | (37 | ) | 10 | (18 | ) | (13 | ) | |||||||||||||||
| – | 9 | 134 | 39 | (42 | ) | 113 | (54 | ) | ||||||||||||||||||||
| Add: fixed charges included in earnings: | ||||||||||||||||||||||||||||
| Interest expense | 24 | 27 | 98 | 114 | 98 | 101 | 125 | |||||||||||||||||||||
| Interest element of rentals | 2 | 2 | 6 | 5 | 6 | 4 | 5 | |||||||||||||||||||||
| Total | 26 | 29 | 104 | 119 | 104 | 105 | 130 | |||||||||||||||||||||
| Total earnings available for fixed charges: | $ | 26 | $ | 38 | $ | 238 | $ | 158 | $ | 62 | $ | 218 | $ | 76 | ||||||||||||||
| Fixed Charges (B): | ||||||||||||||||||||||||||||
| Fixed charges included in earnings | $ | 26 | $ | 29 | $ | 104 | $ | 119 | $ | 104 | $ | 105 | $ | 130 | ||||||||||||||
| Capitalized interest | – | – | – | – | – | – | – | |||||||||||||||||||||
| Total fixed charges | $ | 26 | $ | 29 | $ | 104 | $ | 119 | $ | 104 | $ | 105 | $ | 130 | ||||||||||||||
| Ratio of Earnings to Fixed Charges | 1.00 | 1.31 | 2.29 | 1.33 | N/A (C | ) | 2.08 | N/A (C | ) | |||||||||||||||||||
| (A) | “Earnings” are defined as pre-tax income from continuing operations, adjusted for undistributed earnings of less than majority owned subsidiaries and fixed charges excluding capitalized interest. |
| (B) | “Fixed charges” are defined as interest on borrowings (whether expensed or capitalized), the portion of rental expense applicable to interest, and amortization of debt issuance costs. |
| (C) | The ratio coverage was less than 1:1 for fiscal years 2009 and 2007. The company would have needed to generate additional pretax earnings of $42 million and $54 million to achieve coverage of 1:1 for fiscal years 2009 and 2007, respectively. |