International Paper (IP) 10-Q 2004 Q3 Quarterly report

Exhibit 12

INTERNATIONAL PAPER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollar amounts in millions)
(Unaudited)

		For the Years Ended December 31,															Nine Months Ended September 30,
		1999			2000			2001			2002			2003			2003			2004
	TITLE
A)	Earnings (loss) from continuing operations before income taxes and minority interest	$	422.0		$	654.0		$	(1,327.0	)	$	307.0		$	292.0		$	285.0		$	538.0
B)	Minority interest expense, net of taxes		(155.0	)		(228.0	)		(139.6	)		(119.0	)		(111.0	)		(90.0	)		(49.0	)
C)	Fixed charges excluding capitalized interest		820.1			1,150.6			1,254.6			1,093.9			1,028.6			782.3			707.4
D)	Amortization of previously capitalized interest		17.0			23.5			31.8			43.3			41.4			31.1			33.0
E)	Equity in undistributed earnings of affiliates		(37.1	)		10.0			18.1			26.9			5.0			2.4			(4.9	)
F)	Earnings (loss) from continuing operations before income taxes and fixed charges	$	1,067.0		$	1,610.1		$	(162.1	)	$	1,352.1		$	1,256.0		$	1,010.8		$	1,224.5
	Fixed Charges
G)	Interest and amortization of debt expense	$	611.6		$	937.8		$	1,049.8		$	891.1		$	874.9		$	659.6		$	636.6
H)	Interest factor attributable to rentals		75.4			72.2			75.8			87.8			86.6			62.4			60.6
I)	Preferred dividends of subsidiaries		133.1			140.6			129.0			115.0			67.1			60.3			10.2
J)	Capitalized interest		29.3			24.4			13.2			12.3			8.6			5.1			7.4
K)	Total fixed charges	$	849.4		$	1,175.0		$	1,267.8		$	1,106.2		$	1,037.2		$	787.4		$	714.8
L)	Ratio of earnings to fixed charges		1.26			1.37						1.22			1.21			1.28			1.71
M)	Deficiency in earnings necessary to cover fixed charges							$	(1,429.9	)

Note: Dividends on International Paper's preferred stock are insignificant. As a result, for all periods presented, the ratios of earnings to fixed charges and preferred stock dividends are the same as the ratios of earnings to fixed charges.