EXHIBIT 12
ASHLAND INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(In millions)
Years Ended September 30
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1992 1993 1994 1995 1996
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EARNINGS
Net income (loss) $ (336) $ 142 $ 197 $ 24 $ 211
Cumulative effect of accounting changes 268 - - - -
Minority interest in earnings of subsidiaries - - - 23 8
Income taxes (90) 58 75 (13) 92
Interest expense 132 124 119 174 172
Interest portion of rental expense 34 35 38 45 53
Amortization of deferred debt expense 1 2 1 1 1
Undistributed earnings of unconsolidated affiliates (22) (12) (14) 6 (17)
Amounts related to significant affiliates*
Earnings 30 (2) 27 16 36
Dividends (4) (4) - (4) -
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$ 13 $ 343 $ 443 $ 272 $ 556
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FIXED CHARGES
Interest expense $ 132 $ 124 $ 119 $ 174 $ 172
Interest portion of rental expense 34 35 38 45 53
Amortization of deferred debt expense 1 2 1 1 1
Capitalized interest 3 9 - - 1
Fixed charges of significant affiliates* 17 16 18 20 17
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$ 187 $ 186 $ 176 $ 240 $ 244
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COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Preferred dividend requirements $ - $ 6 $ 19 $ 19 $ 19
Ratio of pretax to net income** - 1.41 1.38 .72 1.42
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Preferred dividends on a pretax basis - 9 26 14 27
Fixed charges 187 186 176 240 244
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$ 187 $ 195 $ 202 $ 254 $ 271
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RATIO OF EARNINGS TO FIXED CHARGES *** 1.84 2.51 1.13 2.28
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
*** 1.76 2.19 1.07 2.05
* Significant affiliates are companies accounted for on the equity
method that are 50% owned or whose indebtedness has been directly or
indirectly guaranteed by Ashland or its consolidated subsidiaries.
** Computed as income before income taxes and minority interest divided
by net income before minority interest, which adjusts dividends on
preferred stock to a pretax basis.
*** Fixed charges exceeded earnings (as defined) by $174 million as a
result of special charges and the current year impact of accounting
changes.