EXHIBIT 99
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
THREE MONTHS
ENDED
1998 1999 2000 2001 2002 MARCH 31, 2003
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Income (loss) from continuing
operations, before income taxes and
equity earnings (loss) from
affiliates(1)....................... $ 352 $ 262 $ (5) $(111) $ (32) $ (29)
Add:
Fixed charges.................... 58 62 85 83 98 26
Amortization of capitalized
interest....................... 7 7 7 7 7 2
Dividends from affiliated
companies...................... 37 60 45 30 25 --
Less:
Interest capitalized............. (6) (13) (17) (2) (1) --
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Income as adjusted............ $ 448 $ 378 $ 115 $ 7 $ 97 $ (1)
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Fixed charges:
Interest expensed and
capitalized..................... 49 53 73 72 85 23
Estimate of interest within rental
expense......................... 9 9 12 11 13 3
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Fixed charges................. $ 58 $ 62 $ 85 $ 83 $ 98 $ 26
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Ratio of Earnings to Fixed
Charges(2).......................... 7.72 6.10 1.35 0.08 0.99 (0.04)
<FN>
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(1) Includes restructuring and other items of $7 million for the
three months ended March 31, 2003, $17 million for the year
ended December 31, 2002, $86 million for the year ended
December 31, 2001, $107 million for the year ended December 31,
2000 and $61 million for the year ended December 31, 1999.
(2) Earnings for the quarter ended March 31, 2003, and the years
ended December 31, 2002, and 2001, would have to be
$27 million, $1 million and $76 million higher, respectively, in
order to achieve a one-to-one ratio.