Exhibit 12
P&L COAL HOLDINGS CORPORATION
Ratio of Earnings to Fixed Charges
(in thousands)
Twelve Six
From Period Fiscal Year Months Months
May 20, From April Ended Ended Ended
Total 1998 to 1, 1998 to ---------- ---------- -----------
Fiscal March 31, May 19, March 31, March 31, March 31,
1999 1999 1998 1998 1997 1997
--------- --------- --------- ---------- ---------- -----------
Income (Loss) Before Income Taxes $ 25,960 $ 21,143 $ 4,817 $ 250,529 $(702,286) $ 85,985
Interest Expense 180,327 176,105 4,222 33,635 54,643 24,700
Interest Portion of Rental Expense 19,838 17,318 2,520 18,910 16,000 8,002
--------- --------- --------- --------- --------- ---------
Adjusted Earnings (Loss) $ 226,125 $ 214,566 $ 11,559 $ 303,074 $(631,643) $ 118,687
========= ========= ========= ========= ========= =========
Interest Expense $ 180,327 $ 176,105 $ 4,222 $ 33,635 $ 54,643 $ 24,700
Interest Portion of Rental Expense 19,838 17,318 2,520 18,910 16,000 8,002
--------- --------- --------- --------- --------- ---------
Adjusted Fixed Charges $ 200,165 $ 193,423 $ 6,742 $ 52,545 $ 70,643 $ 32,702
========= ========= ========= ========= ========= =========
Ratio of Earnings to Fixed Charges 1.13 1.11 1.71 5.77 -- 3.63
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Fiscal Years Ended
September 30,
------------------------------------
1996 1995 1994
---------- --------- ---------
Income (Loss) Before Income Taxes $(702,467) $ 192,739 $ 86,943
Interest Expense 62,526 58,355 63,404
Interest Portion of Rental Expense 17,069 14,981 13,637
--------- --------- ---------
Adjusted Earnings (Loss) $(622,872) $ 266,075 $ 163,984
========= ========= =========
Interest Expense $ 62,526 $ 58,355 $ 63,404
Interest Portion of Rental Expense 17,069 14,981 13,637
--------- --------- ---------
Adjusted Fixed Charges $ 79,595 $ 73,336 $ 77,041
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Ratio of Earnings to Fixed Charges -- 3.63 2.13
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