EXHIBIT 12.1
TITAN INTERNATIONAL, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS)
Year ended December 31,
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2002 2003 2004 2005 2006
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Earnings:
(Loss) earnings before income taxes Add: $(44,293) $(33,668) $ 15,215 $(2,885) $ 8,574
Fixed charges 22,178 21,478 16,872 9,411 17,789
Distributed income of equity investees 185 212 256 914 0
Deduct:
(Loss) earnings of equity investees (519) 2,398 1,278 2,938 0
Loss on investments (12,376) (2,707) 0 0 0
Debt termination expense 0 0 (3,654) 0 0
Noncash convertible debt conversion charge 0 0 0 (7,225) 0
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Earnings available for fixed charges $ (9,035) $(11,669) $ 34,719 $11,727 $26,363
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Fixed charges:
Interest expense $ 20,565 $ 20,231 $ 16,159 $ 8,617 $17,001
Interest component of rental expense (a) 1,613 1,247 713 794 788
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Total fixed charges $ 22,178 $ 21,478 $ 16,872 $ 9,411 $17,789
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Ratio of earnings to fixed charges (b) n/a n/a 2.06 1.25 1.48
(a) The interest component of rental expense was estimated to be one-fourth of
lease rental expense.
(b) Earnings were insufficient to cover fixed charges for the years ended
December 31, 2002 and 2003, by $31.2 million and $33.1 million,
respectively.