1 EXHIBIT 12 KAISER ALUMINUM & CHEMICAL CORPORATION AND SUBSIDIARY COMPANIES COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES (IN MILLIONS OF DOLLARS, EXCEPT RATIOS) NINE MONTHS ENDED SEPTEMBER 30, YEAR ENDED DECEMBER 31, --------------- -------------------------------------------- 1996 1995 1995 1994 1993 1992 1991 ------ ------ ------ ------- ------- ------ ------ Earnings: Consolidated Income (loss) from continuing operations................................. $ 15.7 $ 43.1 $ 65.3 $ (96.2) $(117.6) $ 29.6 $124.7 Add (deduct) undistributed (earnings) losses of less-than-fifty percent-owned companies.................................. (7.5) (17.2) (19.2) 1.9 3.3 1.9 19.5 Add (deduct) minority interest share of income (losses) of majority-owned subsidiaries that have fixed charges....... (0.5) 1.0 0.4 (1.6) (4.3) (6.5) (7.6) ------ ------ ------ ------- ------- ------ ------ Consolidated earnings (losses)........ 7.7 26.9 46.5 (95.9) (118.6) 25.0 136.6 Add provision (credit) for income taxes: Consolidated provision for income taxes.... 8.4 24.6 37.4 (54.0) (86.9) 5.3 32.4 Add (deduct) minority interest share of tax provision (credit) of majority-owned subsidiaries that have fixed charges..... .9 2.1 2.3 0.6 0.2 0.2 (0.9) ------ ------ ------ ------- ------- ------ ------ Pre-tax income (loss)................. 17.0 53.6 86.2 (149.3) (205.3) 30.5 168.1 Fixed charges included therein (see below)... 70.2 73.3 96.6 95.3 89.5 81.1 90.1 Deduct equity in losses of less-than-fifty percent owned companies where the Company has guaranteed the debt of such companies.................................. (4.7) (2.5) (4.4) Previously capitalized interest amortized during the period.......................... 1.1 0.9 1.2 1.2 1.0 0.7 0.7 ------ ------ ------ ------- ------- ------ ------ Total earnings........................ $ 88.3 $127.8 $184.0 $ (57.5) $(117.3) $112.3 $254.5 ====== ====== ====== ======= ======= ====== ====== Fixed Charges: Interest expense (includes amortization of deferred financing cost)................... $ 68.3 $ 71.3 $ 93.9 $ 88.6 $ 84.2 $ 78.7 $ 82.7 Portion of rental expense representative of the interest factor........................ 1.9 2.0 2.7 2.6 2.3 2.4 2.0 Interest expense related to guaranteed debt of less-than-fifty-percent owned companies incurring losses........................... 4.1 3.0 5.4 ------ ------ ------ ------- ------- ------ ------ Consolidated fixed charges added to pre-tax income...................... 70.2 73.3 96.6 95.3 89.5 81.1 90.1 Capitalized interest......................... 3.2 1.9 2.8 2.7 3.4 4.4 4.2 ------ ------ ------ ------- ------- ------ ------ Total fixed charges................... $ 73.4 $ 75.2 $ 99.4 $ 98.0 $ 92.9 $ 85.5 $ 94.3 ====== ====== ====== ======= ======= ====== ====== Consolidated Ratio of Earnings to Fixed Charges...................................... 1.20x 1.70x 1.85x -- -- 1.31x 2.7x ====== ====== ====== ======= ======= ====== ====== Fixed Charge Coverage Deficiency............... $ 155.5 $ 210.2