Exhibit 12
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(In millions)
(Unaudited)
| Years Ended December 31, | ||||||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) before taxes and cumulative effect of accounting change | $ | 201.4 | $ | 225.6 | $ | 79.2 | $ | 4.0 | $ | (26.5 | ) | |||||||||
Add (deduct): | ||||||||||||||||||||
Equity in income of non-consolidated affiliates | (46.0 | ) | (38.5 | ) | (10.1 | ) | (7.8 | ) | — | |||||||||||
Dividends received from non-consolidated affiliates | — | 0.5 | — | — | — | |||||||||||||||
Amortization of capitalized interest | 0.2 | 0.2 | 0.3 | — | — | |||||||||||||||
Capitalized interest | — | (0.3 | ) | — | — | — | ||||||||||||||
Fixed charges as described below | 30.3 | 29.6 | 29.5 | 31.0 | 36.1 | |||||||||||||||
Total | $ | 185.9 | $ | 217.1 | $ | 98.9 | $ | 27.2 | $ | 9.6 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expensed and capitalized | $ | 20.3 | $ | 20.2 | $ | 20.2 | $ | 20.2 | $ | 25.6 | ||||||||||
Estimated interest factor in rent expense (1) | 10.0 | 9.4 | 9.3 | 10.8 | 10.5 | |||||||||||||||
Total | $ | 30.3 | $ | 29.6 | $ | 29.5 | $ | 31.0 | $ | 36.1 | ||||||||||
Ratio of earnings to fixed charges (2) | 6.1 | 7.3 | 3.4 | — | — | |||||||||||||||
| (1) | Amounts represent those portions of rent expense that are reasonable approximations of interest costs. |
| (2) | Income (loss) before taxes and cumulative effect of accounting change was insufficient to cover fixed charges by approximately $3.8 and $26.5 for the years ended December 31, 2003 and 2002, respectively. |