Exhibit 99
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS (LOSS) TO FIXED CHARGES
(DOLLARS IN MILLIONS)
NINE MONTHS
ENDED
SEPTEMBER 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) $ (258)
Add:
Fixed charges............................ 58 62 85 83 98 84
Amortization of capitalized interest..... 7 7 7 7 7 5
Dividends from affiliated companies...... 37 60 45 30 25 --
Less:
Interest capitalized..................... (6) (13) (17) (2) (1) (1)
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Income (loss) as adjusted............ $ 448 $ 378 $ 115 $ 7 $ 97 $ (171)
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Fixed charges
Interest expensed and capitalized........ 49 53 73 72 85 74
Estimate of interest within rental
expense................................ 9 9 12 11 13 10
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Fixed charges........................ $ 58 $ 62 $ 85 $ 83 $ 98 $ 84
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Ratio of Earnings (Loss) to Fixed Charges(2). 7.72 6.10 1.35 0.08 0.99 (2.04)
<FN>
(1) Includes restructuring and other items of $173 million for the nine months
ended September 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 (loss) for the nine months ended September 30, 2003, and the years
ended December 31, 2002, and 2001, would have to be $255 million,
$1 million and $76 million higher, respectively, in order to achieve a
one-to-one ratio.