Exhibit 12.1
TITAN INTERNATIONAL, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Amounts in thousands)
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Amounts in thousands)
Three months ended | ||||||||||||||||||||||||||||
Year ended December 31, | March 31, | |||||||||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | 2010 | 2011 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 8,574 | $ | (3,884 | ) | $ | 23,010 | $ | (32,002 | ) | $ | 649 | $ | 3,407 | $ | 4,657 | ||||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed charges | 17,789 | 19,853 | 19,061 | 18,852 | 27,203 | 7,202 | 6,371 | |||||||||||||||||||||
Amortization of capitalized interest | 0 | 0 | 182 | 488 | 613 | 153 | 153 | |||||||||||||||||||||
Deduct: | ||||||||||||||||||||||||||||
Capitalized interest | 0 | 392 | 3,203 | 1,987 | 0 | 0 | 0 | |||||||||||||||||||||
Earnings available for fixed charges | $ | 26,363 | $ | 15,577 | $ | 39,050 | $ | (14,649 | ) | $ | 28,465 | $ | 10,762 | $ | 11,181 | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 17,001 | $ | 18,710 | $ | 15,122 | $ | 16,246 | $ | 26,667 | $ | 7,056 | $ | 6,280 | ||||||||||||||
Capitalized interest | 0 | 392 | 3,203 | 1,987 | 0 | 0 | 0 | |||||||||||||||||||||
Interest component of rental expense (a) | 788 | 751 | 736 | 619 | 536 | 146 | 91 | |||||||||||||||||||||
Total fixed charges | $ | 17,789 | $ | 19,853 | $ | 19,061 | $ | 18,852 | $ | 27,203 | $ | 7,202 | $ | 6,371 | ||||||||||||||
Ratio of earnings to fixed charges (b) | 1.48 | n/a | 2.05 | n/a | 1.05 | 1.49 | 1.76 |
(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, 2007 and 2009, by $4.3 million and $33.5 million, respectively. |