Exhibit 12.1
TITAN INTERNATIONAL, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Amounts in thousands)
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Amounts in thousands)
Nine months ended | ||||||||||||||||||||||||||||
Year ended December 31, | September 30, | |||||||||||||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | 2009 | 2010 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | (2,885 | ) | $ | 8,574 | $ | (3,884 | ) | $ | 23,010 | $ | (32,002 | ) | $ | 2,112 | $ | 17,479 | |||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed charges | 9,411 | 17,789 | 19,853 | 19,061 | 18,852 | 13,983 | 20,128 | |||||||||||||||||||||
Amortization of capitalized interest | 0 | 0 | 0 | 182 | 488 | 273 | 460 | |||||||||||||||||||||
Distributed income of equity investees | 914 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Deduct: | ||||||||||||||||||||||||||||
Earnings of equity investees | 2,938 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Capitalized interest | 0 | 0 | 392 | 3,203 | 1,987 | 1,683 | 0 | |||||||||||||||||||||
Earnings available for fixed charges | $ | 4,502 | $ | 26,363 | $ | 15,577 | $ | 39,050 | $ | (14,649 | ) | $ | 14,685 | $ | 38,067 | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 8,617 | $ | 17,001 | $ | 18,710 | $ | 15,122 | $ | 16,246 | $ | 11,819 | $ | 19,713 | ||||||||||||||
Capitalized interest | 0 | 0 | 392 | 3,203 | 1,987 | 1,683 | 0 | |||||||||||||||||||||
Interest component of rental expense (a) | 794 | 788 | 751 | 736 | 619 | 481 | 415 | |||||||||||||||||||||
Total fixed charges | $ | 9,411 | $ | 17,789 | $ | 19,853 | $ | 19,061 | $ | 18,852 | $ | 13,983 | $ | 20,128 | ||||||||||||||
Ratio of earnings to fixed charges (b) | n/a | 1.48 | n/a | 2.05 | n/a | 1.05 | 1.89 |
(a) | The interest component of rental expense was estimated to be one-fourth of lease rental expense. | |
(b) | Earnings were insufficient to cover fixed charges for the year ended December 31, 2005, 2007 and 2009, by $4.9 million, $4.3 million, and $33.5 million, respectively. |