Exhibit 12.1
Novelis Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Fixed Charges
Three | April 1, | May 16, | Six | Six | |||||||||||||||||||||||||||||||||
Months | 2007 | 2007 | Year | Months | Months | ||||||||||||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Ended | Through | Through | Ended | Ended | Ended | |||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | March 31, | May 15, | March 31, | March 31, | September 30, | September 30, | |||||||||||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2007 | 2008 | 2009 | 2008 | 2009 | |||||||||||||||||||||||||||||
Combined | Predecessor | Predecessor | Predecessor | Predecessor | Successor | Successor | Successor | Successor | |||||||||||||||||||||||||||||
(In millions, except ratio amounts) | |||||||||||||||||||||||||||||||||||||
EARNINGS BEFORE FIXED CHARGES: | |||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations before cumulative effect of accounting change and extraordinary items | $ | 55 | $ | 96 | $ | (275 | ) | $ | (64 | ) | $ | (97 | ) | $ | (20 | ) | $ | (1,910 | ) | $ | (80 | ) | $ | 338 | |||||||||||||
Less: Equity income of non-consolidated affiliates | (6 | ) | (6 | ) | (16 | ) | (3 | ) | (1 | ) | (25 | ) | 172 | — | 20 | ||||||||||||||||||||||
Plus: Dividends received from non-consolidated affiliates | 2 | — | 5 | — | 4 | — | — | — | 2 | ||||||||||||||||||||||||||||
Plus: Noncontrolling interest of subsidiaries that have fixed charges | 10 | 21 | 1 | 2 | (1 | ) | 4 | (12 | ) | 2 | 37 | ||||||||||||||||||||||||||
Earnings before fixed charges | $ | 61 | $ | 111 | $ | (285 | ) | $ | (65 | ) | $ | (95 | ) | $ | (41 | ) | $ | (1,750 | ) | $ | (78 | ) | $ | 397 | |||||||||||||
FIXED CHARGES: | |||||||||||||||||||||||||||||||||||||
Amount representative of interest factor in rentals | $ | 6 | $ | 7 | $ | 7 | $ | 1 | $ | 1 | $ | 9 | $ | 8 | $ | 4 | $ | 4 | |||||||||||||||||||
Interest expense and amortization of debt issuance costs | 74 | 203 | 221 | 54 | 27 | 191 | 182 | 91 | 87 | ||||||||||||||||||||||||||||
Interest expense from equity investees | 2 | (1 | ) | 1 | — | — | (1 | ) | — | — | — | ||||||||||||||||||||||||||
Capitalized interests | 1 | 1 | 2 | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total fixed charges | 83 | 210 | 231 | 55 | 28 | 199 | 190 | 95 | 91 | ||||||||||||||||||||||||||||
Less: Capitalized interests | (1 | ) | (1 | ) | (2 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Fixed charges added to income (loss) | $ | 82 | $ | 209 | $ | 229 | $ | 55 | $ | 28 | $ | 199 | $ | 190 | $ | 95 | $ | 91 | |||||||||||||||||||
Plus: Amortization of capitalized interest | 6 | 7 | 9 | 1 | (2 | ) | — | — | — | — | |||||||||||||||||||||||||||
Plus: Income taxes | 166 | 107 | (4 | ) | 7 | 4 | 73 | (246 | ) | (133 | ) | 199 | |||||||||||||||||||||||||
Earnings before fixed charges and income taxes | $ | 315 | $ | 434 | $ | (51 | ) | $ | (2 | ) | $ | (65 | ) | $ | 231 | $ | (1,806 | ) | $ | (116 | ) | $ | 687 | ||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 3.8 | x | 2.1 | x | (A | ) | (A | ) | (A | ) | 1.2 | x | (A | ) | (A | ) | 7.5 | x | |||||||||||||||||||
(A) | Due to losses incurred, the ratio coverage was less than 1:1 for each of the periods presented below. The table below presents the amount of additional earnings required to bring the fixed charge ratio to 1:1 for each respective period. |
Three | Six | ||||||||||||||||||||
Months | April 1, 2007 | Months | |||||||||||||||||||
Year Ended | Ended | Through | Year Ended | Ended | |||||||||||||||||
December 31, | March 31, | May 15, | March 31, | September 30, | |||||||||||||||||
2006 | 2007 | 2007 | 2009 | 2008 | |||||||||||||||||
(In millions) | Predecessor | Predecessor | Predecessor | Successor | Successor | ||||||||||||||||
Additional earnings required to bring fixed charge ratio to 1:1 | $ | 280 | $ | 57 | $ | 93 | $ | 1,996 | $ | 211 | |||||||||||