EXHIBIT 12 TENNECO INC. AND CONSOLIDATED SUBSIDIARIES COMBINED WITH 50% OWNED UNCONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) (UNAUDITED) THREE MONTHS ENDED MARCH 31, -------------- 1997 1996 ------ ------ Income from continuing operations............................... $ 76 $ 60 Add: Interest...................................................... 45 47 Portion of rentals representative of interest factor.......... 13 14 Preferred stock dividend requirements of majority-owned subsidiaries................................................. 5 6 Income tax expense and other taxes on income.................. 33 49 Amortization of interest capitalized.......................... 1 -- Undistributed (earnings) losses of affiliated companies in which less than a 50% voting interest is owned............... (1) -- ------ ------ Earnings as defined......................................... $ 172 $ 176 ====== ====== Interest........................................................ $ 45 $ 47 Interest capitalized............................................ 1 3 Portion of rentals representative of interest factor............ 13 14 Preferred stock dividend requirements of majority-owned subsidiaries on a pre-tax basis................................ 7 9 ------ ------ Fixed charges as defined.................................... $ 66 $ 73 ====== ====== Ratio of earnings to fixed charges.............................. 2.61 2.41 ====== ======