Exhibit 12 Union Carbide Corporation and Subsidiaries Computation of Ratio of Earnings to Fixed Charges (Millions of dollars, except ratios) For the Year Ended December 31, 1998 Fixed Charges: Interest expensed 114 Interest capitalized 43 Amortized premiums/discounts related to indebtedness - Amortized capitalized expenses related to indebtedness - Estimate of the interest within rental expense 19 Preference security dividend requirements of consolidated subsidiaries - Charges arising from guarantees of equity investees 67 Total Fixed Charges 243 Earnings Pretax income from continuing operations 689 Less: Partnership income 33 Sub-total 656 Add: Fixed charges 243 Amortization of capitalized interest 17 Distributed income of equity investees 123 UCC's share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges (62) Less: Interest capitalized 43 Preference security dividend requirements of consolidated subsidiaries - Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges - Total Earnings 934 Ratio of Earnings to Fixed Charges 3.8 <FN> For the purpose of calculating the ratio of earnings to fixed charges, earnings consist of pre-tax income of consolidated companies from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees plus (a) fixed charges, (b) amortization of capitalized interest, (c) distributed income of equity investees and (d) the Company's share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges less (a) interest capitalized, (b) preference security dividend requirements of consolidated subsidiaries and (c) the minority interest in pre-tax income of subsidiaries that have not incurred fixed charges. Fixed charges means the sum of (a) interest expensed and capitalized, (b) amortized premiums, discounts and capitalized expenses related to indebtedness, (c) an estimate of the interest within rental expense and (d) preference security dividend requirements of consolidated subsidiaries. The Company has a 45 percent equity investment in Equate Petrochemical Company (Equate). During 1998, the Company severally guaranteed 45 percent of Equate's long-term debt and working capital financing needs. Interest charges associated with guarantees of outstanding borrowings totaled $67 million for the year ended December 31, 1998, and have been included, along with the Company's equity in Equate's pre-tax loss for the same period, in the calculation of the ratio of earnings to fixed charges. </FN>