**EXHIBIT 12**

 

OWENS-ILLINOIS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of dollars, except ratios)

 
| ** **                                                                                          | ** ** | **Years ended December 31,** | ** ** |
|-----------------------------------------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                                                          | ** ** | **2008**                                    | ** ** | **2007** | ** ** | **2006** | ** ** |
| Earnings from  continuing operations before income taxes and minority share owners’  interests |       | $                                           | 808.4      |   | $ | 621.6 |   | $ | 285.1 |   |
| Less: Equity  earnings                                                                              |       | (50.8                                       | )          | (34.1 | ) | (23.4 | ) |
| Add: Total fixed  charges deducted from earnings                                                    |       | 260.5                                       |       | 362.7 |   | 361.3 |   |
|  Proportional  share of pre-tax earnings of 50% owned associates                               |       | 12.6                                        |       | 7.7 |   | 7.9 |   |
|  Dividends  received from equity investees                                                     |       | 24.5                                        |       | 21.7 |   | 43.5 |   |
| Earnings  available for payment of fixed charges                                                    |       | $                                           | 1,055.2    |   | $ | 979.6 |   | $ | 674.4 |   |
|                                                                                                |       |                                        |       |   |   |   |   |
| Fixed charges  (including the Company’s proportional share of 50% owned associates):           |       |                                        |       |   |   |   |   |
| Interest expense                                                                                    |       | $                                           | 245.1      |   | $ | 340.0 |   | $ | 343.3 |   |
| Portion of  operating lease rental deemed to be interest                                            |       | 7.5                                         |       | 14.1 |   | 12.3 |   |
| Amortization of  deferred financing costs and debt discount expense                                 |       | 7.9                                         |       | 8.6 |   | 5.7 |   |
| Total fixed charges  deducted from earnings                                                         |       | $                                           | 260.5      |   | $ | 362.7 |   | $ | 361.3 |   |
|                                                                                                |       |                                        |       |   |   |   |   |
| Ratio of  earnings to fixed charges                                                                 |       | 4.1                                         |       | 2.7 |   | 1.9 |   |

 

1

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OWENS-ILLINOIS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions of dollars, except ratios)

 
| ** **                                                                                          | ** ** | **Years ended December 31,** | ** ** |
|-----------------------------------------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                                                          | ** ** | **2005**                                    | ** ** | **2004** | ** ** |
| Earnings from  continuing operations before income taxes and minority share owners’  interests |       | $                                           | (72.1      | ) | $ | 395.8 |   |
| Less: Equity  earnings                                                                              |       | (20.5                                       | )          | (26.1 | ) |
| Add: Total fixed  charges deducted from earnings                                                    |       | 336.5                                       |       | 342.0 |   |
|  Proportional  share of pre-tax earnings of 50% owned associates                               |       | 8.9                                         |       | 11.0 |   |
|  Dividends  received from equity investees                                                     |       | 11.0                                        |       | 12.8 |   |
| Earnings  available for payment of fixed charges                                                    |       | $                                           | 263.8      |   | $ | 735.5 |   |
| Fixed charges  (including the Company’s proportional share of 50% owned associates):           |       |                                        |       |   |   |
| Interest expense                                                                                    |       | $                                           | 318.7      |   | $ | 323.0 |   |
| Portion of  operating lease rental deemed to be interest                                            |       | 11.1                                        |       | 13.0 |   |
| Amortization of  deferred financing costs and debt discount expense                                 |       | 6.7                                         |       | 6.0 |   |
| Total fixed  charges deducted from earnings                                                         |       | $                                           | 336.5      |   | $ | 342.0 |   |
|                                                                                                |       |                                        |       |   |   |
| Deficiency of  earnings available to cover fixed charges                                            |       | $                                           | 72.7       |   |   |   |
| Ratio of  earnings to fixed charges                                                                 |       |                                        |       | 2.2 |   |

 

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