EXHIBIT 12 CASE CORPORATION AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (DOLLARS IN MILLIONS) SIX MONTHS ENDED JUNE 30, ------------ 1997 1996 ----- ----- Net Income....................................................... $ 202 $ 163 Add: Interest....................................................... 79 78 Amortization of capitalized debt expense ...................... 1 3 Portion of rentals representative of interest factor .......... 5 7 Income tax expense and other taxes on income .................. 95 112 Fixed charges of unconsolidated subsidiaries .................. 1 2 Extraordinary loss............................................. -- 22 ----- ----- Earnings as defined ......................................... $ 383 $ 387 ===== ===== Interest......................................................... $ 79 $ 78 Amortization of capitalized debt expense ........................ 1 3 Portion of rentals representative of interest factor ............ 5 7 Fixed charges of unconsolidated subsidiaries .................... 1 2 ----- ----- Fixed charges as defined .................................... $ 86 $ 90 ===== ===== Preferred Dividends: Amount declared ............................................... $ 3 $ 3 Gross-up to pre-tax based on effective rates of 32% and 38%, respectively.................................................. $ 4 $ 5 Ratio of earnings to fixed charges and preferred dividends ...... 4.26x 4.07x ===== =====