EXHIBIT 12
STONE CONTAINER CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(in millions)
YEAR ENDED DECEMBER 31,
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1993 1994 1995 1996 1997
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Income (loss) before extraordinary charges and cumulative effects of
accounting changes................................................... $ (319.2) $ (128.8) $ 444.5 $ (122.5) $ (404.4)
Income tax provision (credit).......................................... (147.7) (35.5) 320.9 (66.0) (200.8)
Minority interest in consolidated subsidiaries......................... 3.6 1.2 29.3 (.6) .1
Preferred stock dividend requirements of majority owned subsidiary..... (5.7) (9.4) -- -- --
Undistributed (earnings) loss of non-consolidated subsidiaries......... 13.3 9.1 (9.0) (48.6) 94.0
Capitalized interest................................................... (10.8) (4.7) (13.2) (11.7) (3.2)
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(466.5) (168.1) 772.5 (249.4) (514.3)
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Fixed charges:
Interest charges (expensed and capitalized), amortization of debt
discount and debt fees on all indebtedness.......................... 437.5 460.7 473.5 425.2 457.1
Interest cost portion of rental expenses (33 1/3%)................... 27.4 29.1 35.4 36.0 38.1
Preferred stock dividend requirements of majority owned subsidiary... 5.7 9.4 -- -- --
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Total fixed charges................................................ 470.6 499.2 508.9 461.2 495.2
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Earnings before income taxes, undistributed (earnings) loss of
non-consolidated subsidiaries, minority interest and fixed charges
(excluding capitalized interest)..................................... $ 4.1 $ 331.1 $ 1,281.4 $ 211.8 $ (19.1)
Ratio of earnings to fixed charges..................................... (D) (C) 2.52 (B) (A)
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(A) The Company's earnings for the year ended December 31, 1997 were
insufficient to cover fixed charges by $514.3 million.
(B) The Company's earnings for the year ended December 31, 1996 were
insufficient to cover fixed charges by $249.4 million.
(C) The Company's earnings for the year ended December 31, 1994 were
insufficient to cover fixed charges by $168.1 million. Earnings for 1994
included a non-recurring pretax gain of $22.0 million relating to an
involuntary conversion at the Company's Panama City, Florida pulp and
paperboard mill. If such a non-recurring event had not occurred, earnings
would have been insufficient to cover the fixed charges by $190.1 million.
(D) The Company's earnings for the year ended December 31, 1993 were
insufficient to cover fixed charges by $466.5 million. Earnings for 1993
included a non-recurring pretax gain of $35.4 million from the sale of the
Company's 49 percent equity interest in Empaques de Carton Titan, S.A. If
such a non-recurring event had not occurred, earnings would have been
insufficient to cover fixed charges by $501.9 million.