EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions) Six months ended Years ended September 30 March 31 --------------------------------------------------------- ---------------------- 1999 2000 2001 2002 2003 2003 2004 ---------- --------- --------- --------- ---------- ---------- ---------- EARNINGS - -------- Income (loss) from continuing operations $ 283 $ 272 $ 390 $ 115 $ 94 $ (38) $ 27 Income taxes 188 179 266 68 44 (19) 16 Interest expense 141 189 160 133 121 62 56 Interest portion of rental expense 34 39 40 35 33 16 16 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) 34 97 ---------- --------- --------- --------- ---------- ---------- ---------- $ 636 $ 568 $ 767 $ 373 $ 196 $ 56 $ 213 ========== ========= ========= ========= ========== ========== ========== FIXED CHARGES - ------------- Interest expense $ 141 $ 189 $ 160 $ 133 $ 121 $ 62 $ 56 Interest portion of rental expense 34 39 40 35 33 16 16 Amortization of deferred debt expense 1 2 2 2 2 1 1 ---------- --------- --------- --------- ---------- ---------- ---------- $ 176 $ 230 $ 202 $ 170 $ 156 $ 79 $ 73 ========== ========= ========= ========= ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 3.61 2.47 3.80 2.19 1.26 0.71 2.92