Howmet Aerospace (HWM) 10-K 2004 FY Annual report

Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

FOR THE YEAR ENDED DECEMBER 31

(in millions, except ratios)

	2004			2003			2002			2001			2000
Earnings:
Income from continuing operations before taxes on income and before accounting change	$	2,204		$	1,710		$	1,007		$	1,623		$	2,697
Minority interests’ share of earnings of majority-owned subsidiaries without fixed charges		—			—			—			—			1
Less equity earnings		(145	)		(138	)		(72	)		(118	)		(115	)
Fixed charges added to earnings		314			347			380			420			469
Distributed income of less than 50% owned persons		59			35			21			23			9
Amortization of capitalized interest:
Consolidated		25			21			14			13			15
Proportionate share of 50% owned persons		—			—			—			—			—
Total earnings	$	2,457		$	1,975		$	1,350		$	1,961		$	3,076
Fixed Charges:
Interest expense:
Consolidated	$	271		$	314		$	350		$	371		$	427
Proportionate share of 50% owned persons		3			4			4			6			6
		274			318			354			377			433
Amount representative of the interest factor in rents:
Consolidated		38			28			25			41			34
Proportionate share of 50% owned persons		2			1			1			2			2
		40			29			26			43			36
Fixed charges added to earnings		314			347			380			420			469
Interest capitalized:
Consolidated		27			21			22			22			20
Proportionate share of 50% owned persons		—			—			—			—			—
		27			21			22			22			20
Total fixed charges	$	341		$	368		$	402		$	442		$	489
Ratio of earnings to fixed charges		7.2			5.4			3.4			4.4			6.3

The financial information of all prior periods has been reclassified to reflect discontinued operations.

40