**Exhibit 12**

 

OWENS-ILLINOIS, INC.

COMPUTATION OF RATIO OFEARNINGS TO FIXED CHARGES

AND EARNINGS TO COMBINEDFIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in millions)

 
| ** **                                                                                | ** **                                                          | **Three months ended March 31,** | ** ** |
|-------------------------------------------------------------------------------------------|---------------------------------------------------------------------|------------------------------------------------------|------------|
| ** **                                                                                | ** **                                                          | **2009**                                             | ** ** | **2008** | ** ** |
|                                                                                      |                                                                |                                                 |       |   |   |
| Earnings from  continuing operations before income taxes                                  |                                                                | $                                                    | 90.0       |   | $ | 255.1 |   |
| Less:                                                                                     | Equity earnings                                                     |                                                 | (13.6      | ) | (11.1 | ) |
| Add:                                                                                      | Total fixed  charges deducted from earnings                         |                                                 | 49.6       |   | 66.2 |   |
|                                                                                      | Proportional  share of pre-tax earnings of 50% owned associates     |                                                 | 3.4        |   | 3.8 |   |
|                                                                                      | Dividends  received from equity investees                           |                                                 | 6.9        |   | 7.0 |   |
|                                                                                      |                                                                |                                                 |       |   |   |   |
|                                                                                      | Earnings  available for payment of fixed charges                    |                                                 | $          | 136.3 |   | $ | 321.0 |   |
|                                                                                      |                                                                |                                                 |       |   |   |   |
| Fixed charges  (including the Company’s proportional share of 50% owned associates): |                                                                |                                                 |       |   |   |
|                                                                                      |                                                                |                                                 |       |   |   |   |
|                                                                                      | Interest expense                                                    |                                                 | $          | 45.7 |   | $ | 62.4 |   |
|                                                                                      | Portion of  operating lease rental deemed to be interest            |                                                 | 1.5        |   | 1.9 |   |
|                                                                                      | Amortization of  deferred financing costs and debt discount expense |                                                 | 2.4        |   | 1.9 |   |
|                                                                                      |                                                                |                                                 |       |   |   |   |
|                                                                                      | Total fixed  charges deducted from earnings and fixed charges       |                                                 | 49.6       |   | 66.2 |   |
|                                                                                      |                                                                |                                                 |       |   |   |
| Preferred stock  dividends (increased to assumed pre-tax amount)                          |                                                                |                                                 |       | 7.2 |   |
|                                                                                      |                                                                |                                                 |       |   |   |
| Combined fixed  charges and preferred stock dividends                                     |                                                                | $                                                    | 49.6       |   | $ | 73.4 |   |
|                                                                                      |                                                                |                                                 |       |   |   |
| Ratio of  earnings to fixed charges                                                       |                                                                | 2.7                                                  |       | 4.8 |   |
| Ratio of  earnings to combined fixed charges and preferred stock dividends                |                                                                |                                                 |       | 4.4 |   |

 

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