Exhibit 12(b)
OLIN CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends
(Unaudited)
(In millions) Years Ended December 31,
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1994 1993 1992 1991 1990
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Earnings:
Income (loss) before taxes $141 $(150) $88 $(25) $116
Add (deduct):
Income taxes of 50% owned affiliates 4 3 1 3 (4)
Equity in (earnings) loss of less than
50% owned affiliates 2 4 5 - (5)
Dividends received from less than
50% owned affiliates - - - - 1
Interest capitalized, net of amortization 1 (1) (4) (1) (2)
Fixed charges as described below 56 56 58 63 72
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Total $204 $(88) $148 $40 $178
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Fixed charges and preferred stock dividends:
Interest expense 38 41 45 50 57
Estimated interest factor in rent expense 18 15 13 13 15
Preferred stock dividend requirement 28 28 26 13 13
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Total $84 $84 $84 $76 $85
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Ratio of earnings to combined fixed charges
and preferred stock dividends (a)(b) 2.4 - 1.8 0.5 2.1
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(a) In the twelve months ended December 31, 1993 and December 31, 1991,
earnings were inadequate to cover combined fixed charges and preferred stock
dividends by $172 million and $36 million, respectively. In 1993, the Company
recorded an after-tax charge of $132 million for personnel reductions, business
restructurings involving consolidations and re-alignments within divisions,
costs at sites of discontinued businesses, future environmental liabilities,
and other charges. In 1991, the Company recorded an after-tax charge of $80
million to cover losses on the disposition and write-down of certain businesses
and costs of personnel reductions.
(b) The ratio of earnings to combined fixed charges and preferred stock
dividends has been computed based upon income before taxes and fixed charges
included in income (loss) after eliminating the amortization of capitalized
interest and the undistributed (earnings) losses of less than 50%-owned
affiliates. Fixed charges include interest and that portion of rental expense
deemed to represent interest.