1 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, -------------- 1998 1997 ----- ----- Net income.................................................. $ 315 $ 285 Add: Interest............................................... 178 157 Portion of rentals representative of interest factor... 40 40 Preferred stock dividend requirements of majority-owned subsidiaries.......................................... 22 16 Income tax expense and other taxes on income........... 151 138 Amortization of interest capitalized................... 1 1 Undistributed (earnings) losses of affiliated companies in which less than a 50% voting interest is owned..... (3) (1) ----- ----- Earnings as defined............................... $ 704 $ 636 ===== ===== Interest.................................................... $ 178 $ 157 Interest capitalized........................................ -- 1 Portion of rentals representative of interest factor........ 40 40 Preferred stock dividend requirements of majority-owned subsidiaries on a pre-tax basis........................... 33 24 ----- ----- Fixed charges as defined.......................... $ 251 $ 222 ===== ===== Ratio of earnings to fixed charges.......................... 2.80 2.86 ===== =====