EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions) Nine months ended Years ended September 30 June 30 --------------------------------------------------------- ---------------------- 1999 2000 2001 2002 2003 2003 2004 ---------- --------- --------- --------- ---------- ---------- ---------- EARNINGS - -------- Income from continuing operations $ 283 $ 272 $ 390 $ 115 $ 94 $ 33 $ 195 Income taxes 188 179 266 68 44 17 111 Interest expense 141 189 160 133 121 94 84 Interest portion of rental expense 34 39 40 35 33 23 25 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) (55) (121) ---------- --------- --------- --------- ---------- ---------- ---------- $ 636 $ 568 $ 767 $ 373 $ 196 $ 113 $ 295 ========== ========= ========= ========= ========== ========== ========== FIXED CHARGES - ------------- Interest expense $ 141 $ 189 $ 160 $ 133 $ 121 $ 94 $ 84 Interest portion of rental expense 34 39 40 35 33 23 25 Amortization of deferred debt expense 1 2 2 2 2 1 1 ---------- --------- --------- --------- ---------- ---------- ---------- $ 176 $ 230 $ 202 $ 170 $ 156 $ 118 $ 110 ========== ========= ========= ========= ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 3.61 2.47 3.80 2.19 1.26 0.96 2.68