EXHIBIT 99
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
SIX MONTHS
ENDED
JUNE 30,
1998 1999 2000 2001 2002 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) $ (88)
Add:
Fixed charges ................................ 58 62 85 83 98 56
Amortization of capitalized interest ......... 7 7 7 7 7 3
Dividends from affiliated companies .......... 37 60 45 30 25 --
Less:
Interest capitalized ......................... (6) (13) (17) (2) (1) (1)
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Income as adjusted ....................... $ 448 $ 378 $ 115 $ 7 $ 97 $ (30)
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Fixed charges
Interest expensed and capitalized ............ 49 53 73 72 85 49
Estimate of interest within rental
expense .................................... 9 9 12 11 13 7
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Fixed charges ............................ $ 58 $ 62 $ 85 $ 83 $ 98 $ 56
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Ratio of Earnings to Fixed Charges (2) ........... 7.72 6.10 1.35 0.08 0.99 (0.54)
<FN>
(1) Includes restructuring and other items of $43 million for the six
months ended June 30, 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 six months ended June 30, 2003, and the years ended
December 31, 2002, and 2001, would have to be $86 million, $1 million
and $76 million higher, respectively, in order to achieve a one-to-one
ratio.