EXHIBIT 99
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
NINE MONTHS
ENDED
1999 2000 2001 2002 2003 SEPTEMBER 30, 2004
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Income (loss) from continuing
operations, before income taxes
and equity earnings (loss) from
affiliates(1).................. $ 262 $ (5) $ (111) $ (32) $ (482) $ (181)
Add:
Fixed charges................ 62 85 83 98 131 101
Amortization of capitalized
interest................... 7 7 7 7 6 5
Dividends from affiliated
companies.................. 60 45 30 25 -- --
Less:
Interest capitalized......... (13) (17) (2) (1) (1) (1)
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Income as adjusted....... $ 378 $ 115 $ 7 $ 97 $ (346) $ (76)
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Fixed charges:
Interest expensed and
capitalized................ 53 73 72 85 121 94
Estimate of interest within
rental expense............. 9 12 11 13 10 7
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Fixed charges............ $ 62 $ 85 $ 83 $ 98 $ 131 $ 101
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Ratio of Earnings to Fixed
Charges(2)..................... 6.10 1.35 0.08 0.99 (2.64) (0.75)
<FN>
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(1) Includes restructuring and other items of $94 for the nine
months ended September 30, 2004; $343 for the year ended
December 31, 2003, $17 for the year ended December 31, 2002; $86
for the year ended December 31, 2001; $107 for the year ended
December 31, 2000; and $61 for the year ended December 31, 1999.
(2) Earnings for the nine months ended September 30, 2004 and the
years ended December 31, 2003, 2002, and 2001, would have to be
$177, $477, $1 and $76 higher, respectively, in order to achieve
a one-to-one ratio.