EXHIBIT 12
FERRO CORPORATION AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
| 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax income from continuing operations before adjustment for income or loss from equity investees | $ | 95,671 | $ | (266,273 | ) | $ | 18,138 | $ | 35,516 | $ | (4,566 | ) | ||||||||
Add: | ||||||||||||||||||||
Fixed charges | 28,860 | 28,884 | 28,748 | 44,382 | 64,016 | |||||||||||||||
Amortization of capitalized interest | 227 | 844 | 551 | 98 | 92 | |||||||||||||||
Distributed income of equity investees | 1,509 | 1,336 | 1,146 | 603 | 700 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | 917 | 1,569 | 913 | 1,009 | 1,607 | |||||||||||||||
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Total Earnings | $ | 125,350 | $ | (236,778 | ) | $ | 47,670 | $ | 79,590 | $ | 58,635 | |||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest expense and capitalized interest, including amortization of discounts and capitalized expenses on debt | $ | 28,250 | $ | 28,030 | $ | 28,103 | $ | 43,809 | $ | 62,865 | ||||||||||
Estimate of the interest within rental expense | 610 | 854 | 645 | 573 | 1,151 | |||||||||||||||
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Total Fixed Charges | $ | 28,860 | $ | 28,884 | $ | 28,748 | $ | 44,382 | $ | 64,016 | ||||||||||
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Preference security dividend requirements | — | — | 336 | 2,154 | 767 | |||||||||||||||
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Total Combined Fixed Charges & Preference Dividends | $ | 28,860 | $ | 28,884 | $ | 29,084 | $ | 46,536 | $ | 64,783 | ||||||||||
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Ratio of Earnings to Fixed Charges | 4.34 | — | 1.66 | 1.79 | — | |||||||||||||||
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Ratio of Earnings to Combined Fixed Charges & Preference Dividends | 4.34 | — | 1.64 | 1.71 | — | |||||||||||||||
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Note:
Total earnings were insufficient to cover the fixed charges by $265.7 million and $5.4 million and were insufficient to cover the combined fixed charges by $265.7 million and $6.1 million for the years ended December 31, 2012 and 2009, respectively. Accordingly, such ratios are not presented.
Fixed charges are equal to interest expense (including amortization of deferred financing costs and costs associated with the Company’s asset securitization program), plus the portion of rent expense estimated to represent interest. Costs associated with the Company’s asset securitization program were $0.6 million, $1.3 million, $1.5 million, $2.3 million and $3.4 million in the years ended December 31, 2013, 2012, 2011, 2010 and 2009, respectively.