Exhibit 12 ---------- CONRAIL INC. ----------- COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES ----------------------------------------------------- ($ In Millions) Quarters Ended Quarters Ended Quarters Ended Quarters Ended Years Ended March 31, June 30, September 30, December 31, December 31, -------------- -------------- -------------- -------------- ----------------- 1993 1992 1993 1992 1993 1992 1993 1992 1993 1992 1991 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- Earnings - -------- Pre-tax income (loss) $ 73 $ 61 $137 $124 $ 58 $124 $172 $151 $440 $460 $(335) Add: Interest expense 44 43 46 43 48 43 47 43 185 172 181 Rental expense interest factor 7 6 5 6 5 6 12 8 29 26 19 Less equity in undistributed earnings of 20-50% owned companies (9) 2 2 1 (4) 2 (3) (1) (14) 4 (7) ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- Earnings available for fixed charges (loss) $115 $112 $190 $174 $107 $175 $228 $201 $640 $662 $(142) ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== Fixed Charges - ------------- Interest expense 44 43 46 43 48 43 47 43 185 172 181 Rental expense interest factor 7 6 5 6 5 6 12 8 29 26 19 Capitalized interest 1 1 1 1 1 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- Fixed charges $ 51 $ 49 $ 52 $ 49 $ 53 $ 50 $ 59 $ 51 $215 $199 $ 201 ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== Ratio of earnings to fixed charges 2.25x 2.29x 3.65x 3.55x 2.02x 3.50x 3.86x 3.94x 2.98x 3.33x - ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== ==== <FN> Note:For the purpose of computing the ratio of earnings to fixed charges, earnings represent income before income taxes plus fixed charges, less equity in undistributed earnings of 20% to 50% owned companies. Fixed charges represent interest expense together with interest capitalized and a portion of rent under long-term operating leases representative of an interest factor. After the 1991 special charge of $719 million, earnings available for fixed charges for the year ended December 31, 1991 were inadequate by $343 million.