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<PAGE> 1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1
(MILLIONS OF DOLLARS)
<TABLE>
<CAPTION>
Nine Months Ended
September 30, Year ended December 31,
2000 1999 1998 1997 1996 1995
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
EARNINGS:
Income (loss) before taxes, minority interests $ 42.2 $ (426.7) $ 337.0 $ 581.9 $ 687.5 $1,075.7
and equity in earnings (losses) of
affiliated companies and cumulative effect
of accounting change
Amortization of previously capitalized interest expense 5.6 7.6 8.0 7.2 7.0 6.7
-------- -------- -------- -------- -------- --------
Earnings before fixed charges 47.8 (419.1) 345.0 589.1 694.5 1,082.4
Gross fixed charges $ 169.6 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9
Less interest capitalized (3.5) (0.2) (1.9) (11.7) (1.9) (3.2)
-------- -------- -------- -------- -------- --------
Earnings $ 213.9 $ (293.1) $ 444.1 $ 657.6 $ 765.6 $1,150.1
======== ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense
Expensed 157.5 116.8 90.6 55.8 62.3 58.1
Capitalized 3.5 0.2 1.9 11.7 1.9 3.2
-------- -------- -------- -------- -------- --------
161.0 117.0 92.5 67.5 64.2 61.3
Amortization of debt expenses, debt premiums and discounts 1.7 3.4 3.9 6.5 3.6 3.3
Portion of rental expense representative of interest factor 6.9 5.8 4.6 6.2 5.2 6.3
-------- -------- -------- -------- -------- --------
$ 169.6 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9
======== ======== ======== ======== ======== ========
-------- -------- -------- -------- -------- --------
RATIO OF EARNINGS TO FIXED CHARGES 1.3 (A) 4.4 8.2 10.5 16.2
======== ======== ======== ======== ======== ========
SUPPLEMENTAL INFORMATION TO INCORPORATE THE
EFFECT OF NON-RECURRING ITEMS
EARNINGS:
Income (loss) before taxes, minority interests $ 42.2 $ (426.7) $ 337.0 $ 581.9 $ 687.5 $1,075.7
and equity in earnings (losses) of
affiliated companies and cumulative effect
of accounting change
Net non-recurring charges (gains) (B) 57.4 455.4 (190.9) 45.9 10.0 (26.8)
Amortization of previously capitalized interest expense 5.6 7.6 8.0 7.2 7.0 6.7
-------- -------- -------- -------- -------- --------
Earnings before fixed charges 105.2 36.3 154.1 635.0 704.5 1,055.6
Gross fixed charges 169.6 126.2 101.0 80.2 73.0 70.9
Less interest capitalized (3.5) (0.2) (1.9) (11.7) (1.9) (3.2)
-------- -------- -------- -------- -------- --------
Earnings $ 271.3 $ 162.3 $ 253.2 $ 703.5 $ 775.6 $1,123.3
======== ======== ======== ======== ======== ========
FIXED CHARGES:
Interest expense
Expensed 157.5 116.8 90.6 55.8 62.3 58.1
Capitalized 3.5 0.2 1.9 11.7 1.9 3.2
-------- -------- -------- -------- -------- --------
161.0 117.0 92.5 67.5 64.2 61.3
Amortization of debt expenses, debt premiums and discounts 1.7 3.4 3.9 6.5 3.6 3.3
Portion of rental expense representative of interest factor 6.9 5.8 4.6 6.2 5.2 6.3
-------- -------- -------- -------- -------- --------
$ 169.6 $ 126.2 $ 101.0 $ 80.2 $ 73.0 $ 70.9
======== ======== ======== ======== ======== ========
RATIO OF EARNINGS TO FIXED CHARGES AFTER -------- -------- -------- -------- -------- --------
INCORPORATING NON-RECURRING ITEMS 1.6 1.3 2.5 8.8 10.6 15.8
======== ======== ======== ======== ======== ========
</TABLE>
(A) Due to the loss recorded in 1999, the ratio coverage was less than 1:1.
Phelps Dodge would have needed to generate additional earnings of $419.3
million to achieve a coverage of 1:1 in 1999.
(B) As previously reported in the consolidated financial statements of the
Company for the corresponding period.
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