EXHIBIT 12
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
2001 2002 2003 2004 2005
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Income (loss) from continuing operations,
before income taxes and equity
earnings (loss) from affiliates (1) ..... (111) (32) (482) (296) (71)
Add:
Fixed charges.......................... 83 98 131 125 95
Amortization of capitalized interest... 7 7 6 7 5
Dividends from affiliated companies.... 30 25 - - -
Less:
Interest capitalized................... (2) (1) (1) (3) (3)
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Income as adjusted................ 7 97 (346) (167) 26
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Fixed charges
Interest expensed and capitalized... 72 85 121 116 87
Estimate of interest within rental
expense.......................... 11 13 10 9 8
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Fixed charges................ 83 98 131 125 95
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Ratio of Earnings to Fixed Charges (2)...... 0.08 0.99 (2.64) (1.34) 0.27
<FN>
(1) Includes restructuring and other items of $15 million for the year ended
December 31, 2005, $141 million for the year ended December 31, 2004,
$343 million for the year ended December 31, 2003, $17 million for the
year ended December 31, 2002, and $86 million for the year ended December
31, 2001.
(2) Earnings for the years ended December 31, 2005, 2004, 2003, and 2002,
would have to be $69 million, $292 million, $477 million, and $1 million
higher, respectively, in order to achieve a one-to-one ratio.