EX-12.1 STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Published on November 9, 2009
Exhibit 12.1
Novelis Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Fixed Charges
| Three | April 1, | May 16, | Six | Six | |||||||||||||||||||||||||||||||||
| Months | 2007 | 2007 | Year | Months | Months | ||||||||||||||||||||||||||||||||
| Year Ended | Year Ended | Year Ended | Ended | Through | Through | Ended | Ended | Ended | |||||||||||||||||||||||||||||
| December 31, | December 31, | December 31, | March 31, | May 15, | March 31, | March 31, | September 30, | September 30, | |||||||||||||||||||||||||||||
| 2004 | 2005 | 2006 | 2007 | 2007 | 2008 | 2009 | 2008 | 2009 | |||||||||||||||||||||||||||||
| Combined | Predecessor | Predecessor | Predecessor | Predecessor | Successor | Successor | Successor | Successor | |||||||||||||||||||||||||||||
| (In millions, except ratio amounts) | |||||||||||||||||||||||||||||||||||||
EARNINGS BEFORE FIXED CHARGES: |
|||||||||||||||||||||||||||||||||||||
Net income (loss) from
continuing operations
before cumulative effect
of accounting change and
extraordinary items |
$ | 55 | $ | 96 | $ | (275 | ) | $ | (64 | ) | $ | (97 | ) | $ | (20 | ) | $ | (1,910 | ) | $ | (80 | ) | $ | 338 | |||||||||||||
Less: Equity income of
non-consolidated
affiliates |
(6 | ) | (6 | ) | (16 | ) | (3 | ) | (1 | ) | (25 | ) | 172 | | 20 | ||||||||||||||||||||||
Plus: Dividends received
from non-consolidated
affiliates |
2 | | 5 | | 4 | | | | 2 | ||||||||||||||||||||||||||||
Plus: Noncontrolling
interest of subsidiaries
that have fixed charges |
10 | 21 | 1 | 2 | (1 | ) | 4 | (12 | ) | 2 | 37 | ||||||||||||||||||||||||||
Earnings before fixed
charges |
$ | 61 | $ | 111 | $ | (285 | ) | $ | (65 | ) | $ | (95 | ) | $ | (41 | ) | $ | (1,750 | ) | $ | (78 | ) | $ | 397 | |||||||||||||
FIXED CHARGES: |
|||||||||||||||||||||||||||||||||||||
Amount representative of
interest factor in rentals |
$ | 6 | $ | 7 | $ | 7 | $ | 1 | $ | 1 | $ | 9 | $ | 8 | $ | 4 | $ | 4 | |||||||||||||||||||
Interest expense and
amortization of debt
issuance costs |
74 | 203 | 221 | 54 | 27 | 191 | 182 | 91 | 87 | ||||||||||||||||||||||||||||
Interest expense from
equity investees |
2 | (1 | ) | 1 | | | (1 | ) | | | | ||||||||||||||||||||||||||
Capitalized interests |
1 | 1 | 2 | | | | | | | ||||||||||||||||||||||||||||
Total fixed charges |
83 | 210 | 231 | 55 | 28 | 199 | 190 | 95 | 91 | ||||||||||||||||||||||||||||
Less: Capitalized interests |
(1 | ) | (1 | ) | (2 | ) | | | | | | | |||||||||||||||||||||||||
Fixed charges added to
income (loss) |
$ | 82 | $ | 209 | $ | 229 | $ | 55 | $ | 28 | $ | 199 | $ | 190 | $ | 95 | $ | 91 | |||||||||||||||||||
Plus: Amortization of
capitalized interest |
6 | 7 | 9 | 1 | (2 | ) | | | | | |||||||||||||||||||||||||||
Plus: Income taxes |
166 | 107 | (4 | ) | 7 | 4 | 73 | (246 | ) | (133 | ) | 199 | |||||||||||||||||||||||||
Earnings before fixed
charges and income taxes |
$ | 315 | $ | 434 | $ | (51 | ) | $ | (2 | ) | $ | (65 | ) | $ | 231 | $ | (1,806 | ) | $ | (116 | ) | $ | 687 | ||||||||||||||
RATIO OF EARNINGS TO FIXED
CHARGES |
3.8 | x | 2.1 | x | (A | ) | (A | ) | (A | ) | 1.2 | x | (A | ) | (A | ) | 7.5 | x | |||||||||||||||||||
| (A) | Due to losses incurred, the ratio coverage was less than 1:1 for each of the periods presented below. The table below presents the amount of additional earnings required to bring the fixed charge ratio to 1:1 for each respective period. |
| Three | Six | ||||||||||||||||||||
| Months | April 1, 2007 | Months | |||||||||||||||||||
| Year Ended | Ended | Through | Year Ended | Ended | |||||||||||||||||
| December 31, | March 31, | May 15, | March 31, | September 30, | |||||||||||||||||
| 2006 | 2007 | 2007 | 2009 | 2008 | |||||||||||||||||
| (In millions) | Predecessor | Predecessor | Predecessor | Successor | Successor | ||||||||||||||||
Additional earnings
required to bring
fixed charge ratio
to 1:1 |
$ | 280 | $ | 57 | $ | 93 | $ | 1,996 | $ | 211 | |||||||||||