EXHIBIT 12 CASE CORPORATION AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (DOLLARS IN MILLIONS) NINE MONTHS ENDED SEPTEMBER 30, ------------ 1997 1996 ----- ----- Net Income....................................................... $ 280 $ 214 Add: Interest....................................................... 126 121 Amortization of capitalized debt expense....................... 1 3 Portion of rentals representative of interest factor........... 8 10 Income tax expense and other taxes on income................... 132 137 Fixed charges of unconsolidated subsidiaries................... 2 4 Extraordinary loss............................................. -- 33 ----- ----- Earnings as defined.......................................... $ 549 $ 522 ===== ===== Interest......................................................... $ 126 $ 121 Amortization of capitalized debt expense......................... 1 3 Portion of rentals representative of interest factor............. 8 10 Fixed charges of unconsolidated subsidiaries..................... 2 4 ----- ----- Fixed charges as defined..................................... $ 137 $ 138 ===== ===== Preferred Dividends: Amount declared................................................ $ 5 $ 5 Gross-up to pre-tax based on effective rates of 32% and 36%, respectively.................................................. $ 7 $ 8 Ratio of earnings to fixed charges and preferred dividends....... 3.81x 3.58x ===== =====