Con-way (CNW) 10-K 2006 FY Annual report

Exhibit 12

CON-WAY INC. COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Year Ended December 31,

(Dollars in thousands)

	2006			2005			2004			2003			2002
Fixed Charges:
Interest expense	$	34,206		$	37,501		$	39,695		$	29,597		$	22,825
Capitalized interest		917			136			173			241			455
Amortization of debt expense		585			964			3,952			1,118			1,114
Dividend requirement on Series B Preferred Stock (1)		8,173			9,114			9,797			10,072			10,331
Interest component of rental expense (2)		7,384			7,733			6,590			8,976			8,974
Fixed Charges	$	51,265		$	55,448		$	60,207		$	50,004		$	43,699
Earnings:
Income from continuing operations before taxes	$	392,309		$	352,356		$	248,775		$	205,982		$	162,284
Income from equity-method investment (3)		(52,599	)		(16,061	)		(18,253	)		(20,718	)		(18,188	)
		339,710			336,295			230,522			185,264			144,096
Fixed Charges		51,265			55,448			60,207			50,004			43,699
Capitalized interest		(917	)		(136	)		(173	)		(241	)		(455	)
Preferred dividend requirements (4)		(8,173	)		(9,114	)		(9,797	)		(10,072	)		(10,331	)
	$	381,885		$	382,493		$	280,759		$	224,955		$	177,009
Ratio		7.4	x		6.9	x		4.7	x		4.5	x		4.1	x

(1)	Dividends on shares of the Series B cumulative convertible preferred stock are used to pay debt service on notes issued by Con-way’s Retirement Savings Plan.
(2)	Estimate of the interest portion of lease payments.
(3)	The year ended December 31, 2006, includes a gain of $41.0 million for the sale of Menlo Worldwide’s membership interest in its equity-method investment.
(4)	Preferred stock dividend requirements included in Fixed Charges but not deducted in the determination of income from continuing operations before income taxes.