1
EXHIBIT 12.01
EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in millions)
SECOND QUARTER FIRST SIX MONTHS
1999 1998 1999 1998
Earnings before income taxes $ 64 $ 149 $ 101 $ 263
Add:
Interest expense, net 28 21 54 42
Rental expense (1) 5 6 11 12
Amortization of capitalized interest 4 4 9 8
------ ------ ------ ------
Earnings as adjusted $ 101 $ 180 $ 175 $ 325
====== ====== ====== ======
Fixed charges:
Interest expense, net $ 28 $ 21 $ 54 $ 42
Rental expense (1) 5 6 11 12
Capitalized interest 4 12 9 23
------ ------ ------ ------
Total fixed charges $ 37 $ 39 $ 74 $ 77
====== ====== ====== ======
Ratio of earnings to fixed charges 2.7x 4.6x 2.4x 4.2x
====== ====== ====== ======
- ----------------------
(1) For all periods presented, interest component of rental expense is
estimated to equal one-third of such expense.
53