**EXHIBIT12**

 

OWENS-ILLINOIS,INC.COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ANDEARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS(Millions of dollars, except ratios)

 
| ** **                                                                                         | ** ** | **Years ended December 31,** | ** ** |
|----------------------------------------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                                                         | ** ** | **2008**                                    | ** ** | **2007** | ** ** | **2006** | ** ** |
|                                                                                               |       |                                        |       |   |   |   |   |
| Earnings from  continuing operations before income taxes and minority share owners’ interests |       | $                                           | 558.4      |   | $ | 506.6 |   | $ | 165.1 |   |
| 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                                                   |       | $                                           | 805.2      |   | $ | 864.6 |   | $ | 554.4 |   |
|                                                                                               |       |                                        |       |   |   |   |   |
| 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 |   |
| Preferred stock  dividends (increased to assumed pre-tax amount)                                   |       | 7.2                                         |       | 28.4 |   | 36.0 |   |
| Combined fixed  charges and preferred stock dividends                                              |       | $                                           | 267.7      |   | $ | 391.1 |   | $ | 397.3 |   |
|                                                                                               |       |                                        |       |   |   |   |   |
| Ratio of  earnings to fixed charges                                                                |       | 3.1                                         |       | 2.4 |   | 1.5 |   |
| Ratio of  earnings to combined fixed charges and preferred stock dividends                         |       | 3.0                                         |       | 2.2 |   | 1.4 |   |

 

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OWENS-ILLINOIS,INC.

COMPUTATION OFRATIO OF EARNINGS TO FIXED CHARGES AND

EARNINGS TOCOMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Millions ofdollars, except ratios)

 
| ** **                                                                                                | ** ** | **Years ended December 31,** | ** ** |
|-----------------------------------------------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                                                                | ** ** | **2005**                                    | ** ** | **2004** | ** ** |
| ** **                                                                                                | ** ** | ** **                                  | ** ** | ** ** | ** ** |
| Earnings (loss)  from continuing operations before income taxes and minority share owners’ interests |       | $                                           | (207.1     | ) | $ | 243.2 |   |
| 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                                                          |       | $                                           | 128.8      |   | $ | 582.9 |   |
|                                                                                                      |       |                                        |       |   |   |
| 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 |   |
| Preferred stock  dividends (increased to assumed pre-tax amount)                                          |       | 30.7                                        |       | 29.4 |   |
| Combined fixed  charges and preferred stock dividends                                                     |       | $                                           | 367.2      |   | $ | 371.4 |   |
| Ratio of  earnings to fixed charges                                                                       |       |                                        |       | 1.7 |   |
| Deficiency of  earnings available to cover fixed charges                                                  |       | $                                           | 207.7      |   |   |   |
| Ratio of  earnings to combined fixed charges and preferred stock dividends                                |       |                                        |       | 1.6 |   |
| Deficiency of  earnings available to cover combined fixed charges and preferred stock  dividends          |       | 238.4                                       |       |   |   |

 

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