EXHIBIT 12
STONE CONTAINER CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31,
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(IN MILLIONS) 1991 1992 1993 1994 1995
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Income (loss) before extraordinary charges and cumulative effects of
accounting changes..................................................... $ (49.1) $ (169.9) $ (319.2) $ (128.8) $ 444.5
Income tax provision (credit)........................................... 31.1 (59.4) (147.7) (35.5) 320.9
Minority interest in consolidated subsidiaries.......................... 5.8 5.3 3.6 1.2 29.3
Preferred stock dividend requirements of majority owned subsidiary...... (5.9) (4.7) (5.7) (9.4) --
Undistributed (earnings) loss of non-consolidated subsidiaries.......... 5.4 6.0 13.3 9.1 (9.0)
Capitalized interest.................................................... (81.9) (47.4) (10.8) (4.7) (13.2)
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(94.6) (270.1) (466.5) (168.1) 772.5
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Fixed charges:
Interest charges (expensed and capitalized), amortization of debt
discount and debt fees on all indebtedness........................... 479.7 433.5 437.5 460.7 473.5
Interest cost portion of rental expenses (33 1/3%).................... 26.8 27.8 27.4 29.1 35.4
Preferred stock dividend requirements of majority owned subsidiary.... 5.9 4.7 5.7 9.4 --
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Total fixed charges................................................. 512.4 466.0 470.6 499.2 508.9
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Earnings before income taxes, undistributed (earnings) loss of
non-consolidated subsidiaries, minority interest and fixed charges
(excluding capitalized interest)....................................... $ 417.8 $ 195.9 $ 4.1 $ 331.1 $ 1,281.4
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Ratio of earnings to fixed charges...................................... (D) (C) (B) (A) 2.52
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(A) The Company's earnings for the year ended December 31, 1994 were
insufficient to cover fixed charges by $168.1 million. Earnings for 1994
included a non-recurring pretax gain of $22.0 million relating to an
involuntary conversion at the Company's Panama City, Florida pulp and
paperboard mill. If such a nonrecurring event had not occurred, earnings
would have been insufficient to cover the fixed charges by $190.1 million.
(B) The Company's earnings for the year ended December 31, 1993 were
insufficient to cover fixed charges by $466.5 million. Earnings for 1993
included a non-recurring pretax gain of $35.4 million from the sale of the
Company's 49 percent equity interest in Empaques de Carton Titan, S.A. If
such a non-recurring event had not occurred, earnings would have been
insufficient to cover fixed charges by $501.9 million.
(C) The Company's earnings for the year ended December 31, 1992 were
insufficient to cover fixed charges by $270.1 million.
(D) The Company's earnings for the year ended December 31, 1991 were
insufficient to cover fixed charges by $94.6 million. Earnings for 1991
included a non-recurring pretax gain of $41.8 million associated with the
settlement and termination of a Canadian supply contract and a non-recurring
pretax gain of $17.5 million relating to an involuntary conversion at the
Company's Missoula, Montana mill. If such nonrecurring events had not
occurred, earnings would have been insufficient to cover the fixed charges
by $153.9 million.
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