Exhibit 12
TERRA INDUSTRIES INC.
RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands, Except Ratio)
- ------------------------------------------------------------------------------------------------------------------------------------
Nine Months Ended
Year Ended December 31, September 30,
--------------------------------------------------------------- -----------------------
1996 1997 1998 1999 2000 2000 2001
EARNINGS BEFORE INCOME TAXES $ 166,938 $ 284,377 $ (68,092) $ (116,098) $ (16,182) $ (17,814) $ (72,801)
Minority interest 44,485 27,633 27,510 8,341 5,379 5,360 (2,468)
Equity investee income (491) (1,380) (1,236) (787) (843) (548) (547)
Distributed income of equity investees 600 1,700 1,180 950 800 - -
Preference security dividend (53,493) (34,402) (17,175) - (1,119) - (2,028)
--------- --------- --------- ---------- --------- --------- ---------
158,039 277,928 (57,813) (107,594) (11,965) (13,002) (77,844)
FIXED CHARGES:
Interest expense 43,623 48,400 51,122 53,076 51,511 38,684 37,857
Preference security dividend 53,493 34,402 17,175 - 1,119 - 2,028
Deferred finance amortization 1,671 1,699 2,994 1,232 1,155 462 2,528
Bond discounts 22 22 22 22 22 16 7
Estimated interest expense component
of operating leases 5,394 6,531 6,864 6,798 5,940 4,583 3,488
--------- --------- --------- ---------- --------- --------- ---------
Total fixed charges 104,203 91,054 78,177 61,128 59,747 43,745 45,908
--------- --------- --------- ---------- --------- --------- ---------
EARNINGS BEFORE INCOME TAXES AND
FIXED CHARGES $ 262,242 $ 368,982 $ 20,364 $ (46,466) $ 47,782 $ 30,743 $ (31,936)
========= ========= ========= ========== ========= ========= =========
RATIO OF EARNINGS TO FIXED CHARGES 2.52X 4.05X - - - - -
DEFICIENCY $ - $ - $ (57,813) $ (107,594) $ (11,965) $ (13,002) $ (77,844)
TERRA CAPITAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA
(Amounts in Thousands, Except Ratio)
- --------------------------------------------------------------------------------
Nine Months
Year Ended Ended
December 31, September 30,
2000 2001
PRO FORMA EARNINGS BEFORE INCOME TAXES $ 3,944 $(57,425)
Minority interest 5,379 (2,468)
Equity investee income (843) (547)
Distributed income of equity investees 800 -
Preference security dividend (1,119) (2,028)
--------- --------
8,161 (62,468)
PRO FORMA FIXED CHARGES:
Interest expense 32,603 25,717
Preference security dividend 1,119 2,028
Deferred finance amortization 1,400 1,050
Bond discounts 22 7
Estimated interest expense component
of operating leases 5,940 3,488
--------- --------
Total fixed charges 41,084 32,290
--------- --------
PRO FORMA EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES $ 49,245 $(30,178)
========= ========
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES 1.20X
-
PRO FORMA DEFICIENCY $ - $(62,468)
TERRA INDUSTRIES INC.
RATIO OF EARNINGS TO FIXED CHARGES - PRO FORMA
(Amounts in Thousands, Except Ratio)
- --------------------------------------------------------------------------------
Year Ended Nine Months
December 31, Ended September 30,
2000 2001
PRO FORMA EARNINGS BEFORE INCOME TAXES $(18,519) $(74,933)
Minority interest 5,379 (2,468)
Equity investee income (843) (547)
Distributed income of equity investees 800 -
Preference security dividend (1,119) (2,028)
-------- --------
(14,302) (79,976)
PRO FORMA FIXED CHARGES:
Interest expense 53,603 41,467
Preference security dividend 1,119 2,028
Deferred finance amortization 1,400 1,050
Bond discounts 22 7
Estimated interest expense component
of operating leases 5,940 3,488
-------- --------
Total fixed charges 62,084 48,040
-------- --------
PRO FORMA EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES $ 47,782 $(31,936)
======== ========
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES - -
PRO FORMA DEFICIENCY $(14,302) $(79,976)