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) NINE MONTHS ENDED SEPTEMBER 30, -------------- 1997 1996 ------ ------ Income from continuing operations............................... $ 285 $ 254 Add: Interest...................................................... 157 145 Portion of rentals representative of interest factor.......... 40 43 Preferred stock dividend requirements of majority-owned subsidiaries................................................. 16 15 Income tax expense and other taxes on income.................. 138 171 Amortization of interest capitalized.......................... 1 1 Undistributed (earnings) losses of affiliated companies in which less than a 50% voting interest is owned............... (1) -- ------ ------ Earnings as defined......................................... 636 629 ====== ====== Interest........................................................ 157 145 Interest capitalized............................................ 1 5 Portion of rentals representative of interest factor............ 40 43 Preferred stock dividend requirements of majority-owned subsidiaries on a pre-tax basis................................ 24 24 ------ ------ Fixed charges as defined.................................... 222 217 ====== ====== Ratio of earnings to fixed charges.............................. 2.86 2.90 ====== ======