EXHIBIT 12 HOECHST CELANESE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN MILLIONS, EXCEPT RATIOS) YEARS ENDED DECEMBER 31, ---------------------------------------- 1996 1995 1994 1993 1992 ----- ----- ----- ----- ----- Earnings as defined in the Rules and Definitions specified in Regulation S-K, Section 229.503: Earnings (loss) from operations before income taxes (a) .......... $ 523 $ 698 $(101) $ 292 $ 310 Add-- Fixed charges as computed on bottom half of table ............ 112 136 139 119 124 Amortization of capitalized interest 13 13 11 14 13 Affiliate dividends ................ 4 4 8 2 9 Deduct-- Affiliate income ................... (15) (15) (9) (9) (17) Majority-owned preferred stock dividend requirement ............. -- -- -- -- (1) Capitalized interest ............... (16) (17) (15) (20) (13) ----- ----- ----- ----- ----- Earnings as defined ................ $ 621 $ 819 $ 33 $ 398 $ 425 ===== ===== ===== ===== ===== Fixed charges as defined in the Rules and Definitions specified in Regulation S-K, Section 229.503: Interest and debt expense ........... $ 86 $ 107 $ 109 $ 75 $ 80 Capitalized interest ................ 16 17 15 20 13 Interest factor of rentals (b) ...... 10 10 13 24 22 Interest on obligations under capital leases .................... -- -- -- -- 8 Majority-owned preferred stock dividend requirement ........ -- -- -- -- 1 Discount or premium of indebtness (expensed or capitalized) .......... -- 2 2 -- -- ----- ----- ----- ----- ----- Fixed charges as defined ............ $ 112 $ 136 $ 139 $ 119 $ 124 ===== ===== ===== ===== ===== Ratio of earnings to fixed charges .... 5.5 6.0 * 3.3 3.4 ===== ===== ===== ===== ===== - ---------- * Calculation of the ratio results in an amount that is less than one. The amount of the 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) Excludes reduction for minority interests and cumulative effect of accounting change. (b) Represents one-third of rent expense, which is deemed to be representative of the interest factor of operating leases.