ÁñÁ«ÊÓƵ

Exhibit 12.1

 

ÁñÁ«ÊÓƵ

Computation of Ratio of Earnings to Combined Fixed Charges

and Preferred Stock Dividends

(Unaudited)

 

   

Six Months Ended

June 30,

  Year Ended December 31,  
(Dollars in Millions)     2006       2005*     2005   2004   2003     2002   2001  

Portion of rentals representing interest

  $ 22   $ 24   $ 45   $ 51   $ 46     $ 34   $ 45  

Capitalized interest

    2     4     12     8     8       6     1  

Other interest and fixed charges

    63     31     87     131     156       136     153  

Pretax earnings which would be required to cover preferred stock dividend requirements

    11     12     25     23     35       -     12  
   


Combined fixed charges and preferred stock dividends (A)

  $ 98   $ 71   $ 169   $ 213   $ 245     $ 176   $ 211  
   


Earnings-pretax income with applicable adjustments (B)

  $ 945   $ 1,023   $ 1,467   $ 1,687   $ (559 )   $ 202   $ (382 )
   


Ratio of (B) to (A)

    9.64     14.41     8.68     7.92     (a )     1.15     (b )

 

* During the fourth quarter of 2005, U.S. Steel changed its method of determining the cost of U. S. Steel Kosice's inventories from the last-in, first-out method to the first-in, first-out method. See Note 2 to the financial statements in the ÁñÁ«ÊÓƵ 2005 Annual Report on Form 10-K. Results for the six months ended June 30, 2005 have been adjusted to apply this change retrospectively.
(a) Earnings did not cover fixed charges and preferred stock dividends by $804 million.
(b) Earnings did not cover fixed charges and preferred stock dividends by $593 million.