Eastman Chemical (EMN) 10-Q 2006 Q2 Quarterly report

Form 10-Q

EXHIBIT 12.01

EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

	Second Quarter				First Six Months
(Dollars in millions)		2006		2005		2006		2005
Earnings before income taxes and cumulative effect of
changes in accounting principles	$	171	$	304	$	336	$	521
Add:
Interest expense		26		29		53		62
Appropriate portion of rental expense (1)		6		6		11		11
Amortization of capitalized interest		2		5		5		6
Earnings as adjusted	$	205	$	344	$	405	$	600
Fixed charges:
Interest expense	$	26	$	29	$	53	$	62
Appropriate portion of rental expense (1)		6		6		11		11
Capitalized interest		1		3		6		4
Total fixed charges	$	33	$	38	$	70	$	77
Ratio of earnings to fixed charges		6.2x		9.1x		5.8x		7.8x

 ⁽¹⁾   For all periods presented, the interest component of rental expense is estimated to equal one-third of such expense.

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