EXHIBIT 12
FOSTER WHEELER LTD.
STATEMENT OF COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES AND
COMBINED FIXED CHARGES AND PREFERRED SHARE DIVIDEND REQUIREMENTS
($000'S)
(Restated)
FISCAL YEAR
-----------
2001 2000 1999 1998 1997
---- ---- ---- ---- ----
(LOSS)/EARNINGS:
Net (Loss)/ Earnings $(327,080) $ 37,702 $(145,365) $ (33,303) $ 4,008
Taxes on Income 118,215(2) 15,564 (47,823) 78,327 13,022
Total Fixed Charges 97,604 95,973 94,036 88,994 84,541
Capitalized Interest (718) (151) (4,643) (9,749) (10,379)
Capitalized Interest Amortized 2,219 2,416 2,184 2,265 2,184
Equity Earnings of non-consolidated
affiliated companies accounted
for by the equity method, net
of dividends (4,658) (8,882) (11,002) (7,869) (9,796)
--------- --------- --------- --------- ---------
$(114,418) $ 142,622 $(112,613) $ 118,665 $ 83,580
========= ========= ========= ========= =========
FIXED CHARGES:
Interest Expense(1) $ 84,484 $ 83,254 $ 70,213 $ 62,535 $ 54,675
Capitalized Interest 718 151 4,643 9,749 10,379
Imputed Interest on non-capitalized
lease payments 12,402 12,568 19,180 16,710 19,487
--------- --------- --------- --------- ---------
$ 97,604 $ 95,973 $ 94,036 $ 88,994 $ 84,541
========= ========= ========= ========= =========
Ratio of Earnings to Fixed Charges(3) -- 1.49 -- 1.33 .99
========= ========= ========= ========= =========
The Company's consolidated balance sheets as of December 28, 2001 and December
29, 2000 and the related consolidated statements of earnings and comprehensive
income, shareholders' equity and cash flows for each of the three years in the
period ended December 28, 2001 have been revised to account for the assets,
liabilities and results of operations associated with one of its postemployment
benefit plans in accordance with SFAS 112, "Employers' Accounting for
Postretirement Benefits."
There were no preferred shares outstanding during any of the periods indicated
and therefore the consolidated ratio of earnings to fixed charges and combined
fixed charges and preferred share dividend requirements would have been the same
as the consolidated ratio of earnings to fixed charges and combined fixed
charges for each period indicated.
(1) Includes in 2001, 2000 and 1999 dividends on preferred security of $15,750,
$15,750 and $15,181, respectively.
(2) Includes increase in the tax valuation allowance of $188,000.
(3) Earnings are inadequate to cover fixed charges. The coverage deficiencies
are $212,022 in 2001 and $206,649 in 1999.