EXHIBIT 12
HOECHST CELANESE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS, EXCEPT RATIOS)
YEARS ENDED DECEMBER 31,
-------------------------------------------------
1995 1994 1993 1992 1991(a)
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Earnings as defined in the Rules and Definitions specified in Regulation S-K,
Section 229.503:
Earnings (loss) from operations before income taxes(b)........................ $698 $(101) $292 $310 $385
Add--
Fixed charges as computed on bottom half of table............................. 136 139 119 124 136
Amortization of capitalized interest.......................................... 13 11 14 13 14
Affiliate dividends........................................................... 4 8 2 9 15
Deduct--
Affiliate income.............................................................. (15) (9) (9) (17) (22)
Majority-owned preferred stock dividend requirement........................... - - - (1) (1)
Capitalized interest.......................................................... (17) (15) (20) (13) (10)
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Earnings as defined........................................................... $819 $ 33 $398 $425 $517
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Fixed charges as defined in the Rules and Definitions specified in Regulation
S-K, Section 229.503:
Interest and debt expense..................................................... $107 $ 109 $ 75 $ 80 $ 94
Capitalized interest.......................................................... 17 15 20 13 10
Interest factor of rentals(c)................................................. 10 13 24 22 23
Interest on obligations under capital leases.................................. - - - 8 8
Majority-owned preferred stock dividend requirement........................... - - - 1 1
Discount or premium of indebtedness (expenses or capitalized)................. 2 2 - - -
---- ----- ---- ---- ----
Fixed charges as defined...................................................... $136 $ 139 $119 $124 $136
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Ratio of earnings of fixed charges.............................................. 6.0 * 3.3 3.4 3.8
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* Calculation of the ratio results in an amount that is less than one. The
amount of the net earnings deficiency for the year ended December 31, 1994
was $186 which includes a special charge of $532 associated primarily with
product liability reserves, restructuring costs, asset write-downs and
compliance with environmental regulations. Excluding these charges, the
Ratio of Earnings to Fixed Charges would have been 4.1.
(a) Effective 1/1/91, the Company consolidated Grupo Celanese S.A. in its
financial statements. Prior to 1991, the Company accounted for Grupo
Celanese S.A. under the equity method which was included with "Investments
in affiliates."
(b) Excludes reduction for minority interests and cumulative effect of
accounting change.
(c) Represents one-third of rent expense, which is deemed to be representative
of the interest factor of operating leases.