EXHIBIT NO. 12.1: Computation of ratios of earnings to fixed charges.
Alcan Inc. |
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Computation of Earnings to Fixed Charges |
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US GAAP |
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Continuing Operations |
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(in millions of US dollars) |
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| Three Months Ended | Year Ended December 31, | ||||
| March 31, 2005 | 2004 | 2003 | 2002 | 2001 | 2000 |
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Income (Loss) from continuing operations before cumulative effect of accounting changes | 208 | 252 | 262 | 421 | (60) | 582 |
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Less: Equity Income of less than 50% owned companies | 29 | 54 | 38 | 44 | 44 | 35 |
Plus: Dividends received from less than 50% |
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owned companies | 2 | 38 | 27 | 26 | 25 | 13 |
Plus: Minority interest of subsidiaries that have |
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fixed charges | 1 | 15 | 16 | 3 | (14) | (1) |
Subtotal | 182 | 251 | 267 | 406 | (93) | 559 |
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Fixed Charges |
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Amount representative of interest factor in rentals | 12 | 50 | 30 | 27 | 24 | 19 |
Amount representative of interest factor in rentals, |
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50% owned companies | - | - | - | - | - | - |
Interest expense - net | 85 | 346 | 212 | 198 | 242 | 67 |
Interest expense, 50% owned companies | 4 | 15 | 7 | 10 | 15 | 19 |
Capitalized interest | 5 | 11 | 5 | - | 30 | 81 |
Capitalized interest, 50% owned companies | - | - | - | - | - | - |
Total Fixed Charges | 106 | 422 | 254 | 235 | 311 | 186 |
Less: Capitalized Interest | 5 | 11 | 5 | - | 30 | 81 |
Fixed Charges added to income/(loss) | 101 | 411 | 249 | 235 | 281 | 105 |
Plus: Amortization of capitalized interest | 4 | 20 | 21 | 21 | 22 | 16 |
Income taxes | 98 | 375 | 258 | 287 | (15) | 232 |
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Earnings before fixed charges and income taxes | 385 | 1,057 | 795 | 949 | 195 | 912 |
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Ratio of earnings to fixed charges | 3.63 | 2.50 | 3.13 | 4.04 | - (1) | 4.90 |
(1) Earnings before fixed charges were inadequate to cover total fixed charges by $116 million for the year ended December 31, 2001.