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EXHIBIT 12
THE LUBRIZOL CORPORATION AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(all amounts except ratios are shown in thousands)
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
Pretax income $ 195,350 $ 118,814 $ 231,147 $ 250,608 $ 225,574
Deduct earnings of less
than 50% owned affiliates
(net of distributed
earnings) included in
pretax income (3,195) (1,470) (3,018) (48) (1,384)
Add losses of less than 50%
owned affiliates included
in pretax income 18 888 66 56 1,808
Add fixed charges net of
capitalized interest 29,696 18,976 10,803 10,955 10,376
Add previously capitalized
interest amortized during
period 1,446 1,191 1,118 968 1,096
--------- --------- --------- --------- ---------
"Earnings" $ 223,315 $ 138,399 $ 240,116 $ 262,539 $ 237,470
========= ========= ========= ========= =========
Gross interest expense
including capitalized
interest ("Fixed Charges") 28,953 $ 20,743 $ 13,194 $ 14,010 $ 14,693
Ratio of earnings to
fixed charges 13.0 6.67 18.2 18.7 16.2
Special Adjustments:
- --------------------
"Earnings" $ 223,315 $ 138,399 $ 240,116 $ 262,539 $ 237,470
Plus asset impairment
and special charges 19,569 36,892 9,489
Less gains on investments and
litigation settlements (17,626) (16,201) (53,280) (38,459)
--------- --------- --------- --------- ---------
Adjusted "Earnings" $ 225,258 $ 159,090 $ 240,116 $ 209,259 $ 208,500
========= ========= ========= ========= =========
Ratio of adjusted earnings
to fixed charges 12.9 7.67 18.2 14.9 14.2