EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions) Three months ended Years ended September 30 December 31 --------------------------------------------------------- ---------------------- 1999 2000 2001 2002 2003 2002 2003 ---------- --------- --------- --------- ---------- ---------- ---------- EARNINGS - -------- Income (loss) from continuing operations $ 283 $ 272 $ 390 $ 115 $ 94 $ (1) $ 39 Income taxes 188 179 266 68 44 1 23 Interest expense 141 189 160 133 121 31 28 Interest portion of rental expense 34 39 40 35 33 8 8 Amortization of deferred debt expense 1 2 2 2 2 1 1 Distributions in excess of (less than) earnings of unconsolidated affiliates (11) (113) (91) 20 (98) 47 110 ---------- --------- --------- --------- ---------- ---------- ---------- $ 636 $ 568 $ 767 $ 373 $ 196 $ 87 $ 209 ========== ========= ========= ========= ========== ========== ========== FIXED CHARGES - ------------- Interest expense $ 141 $ 189 $ 160 $ 133 $ 121 $ 31 $ 28 Interest portion of rental expense 34 39 40 35 33 8 8 Amortization of deferred debt expense 1 2 2 2 2 1 1 ---------- --------- --------- --------- ---------- ---------- ---------- $ 176 $ 230 $ 202 $ 170 $ 156 $ 40 $ 37 ========== ========= ========= ========= ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 3.61 2.47 3.80 2.19 1.26 2.18 5.65