Exhibit 12
Cytec Industries Inc.
Computation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2005 2004 (2) 2005 2004 (2)
---------- ----------- ---------- ------------
Earnings (loss) from continuing operations
before income taxes, minority interest
and equity in earnings of associated
companies $ (7.9) $ 35.8 $ (30.5) $ 79.5
Add:
Distributed income of associated
companies - - 1.0 1.1
Amortization of capitalized interest 0.1 0.1 0.3 0.2
Fixed charges 40.4 6.5 52.8 13.6
Less:
Capitalized interest (0.2) (0.3) (0.4) (0.8)
-------- --------- -------- ---------
Earnings as adjusted $ 32.4 $ 42.1 $ 23.2 $ 93.6
Fixed charges:
Interest on indebtedness including
amortized premiums, discounts and
deferred financing costs $ 39.0 $ 5.6 $ 50.3 $ 11.8
Portion of rents representative of the
interest factor 1.4 0.9 2.5 1.8
-------- --------- -------- ---------
Fixed charges $ 40.4 $ 6.5 $ 52.8 $ 13.6
Ratio of earnings to fixed charges 0.8 (1) 6.5 0.4 (1) 6.9
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(1) In order to achieve a one-to-one ratio of earnings to fixed charges for the
three and six months ended June 30, 2005, earnings would need to increase by
$8.0 and 29.6 respectively.
(2) 2004 results were restated to show the effect of FSP 106-2, which was
adopted retroactively during the third quarter of 2004, and the retroactive
application of the change from the LIFO to the FIFO inventory method which was
adopted on January 1, 2005. Refer to Note 1.