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, -------------- 1998 1997 ------ ------ Net Income..................................................... $ 258 $ 280 Add: Interest..................................................... 170 126 Amortization of capitalized debt expense..................... 1 1 Portion of rentals representative of interest factor......... 9 8 Income tax expense and other taxes on income................. 120 132 Fixed charges of unconsolidated subsidiaries................. 3 2 ------ ------ Earnings as defined........................................ $ 561 $ 549 ====== ====== Interest....................................................... $ 170 $ 126 Amortization of capitalized debt expense....................... 1 1 Portion of rentals representative of interest factor........... 9 8 Fixed charges of unconsolidated subsidiaries................... 3 2 ------ ------ Fixed charges as defined................................... $ 183 $ 137 ====== ====== Preferred Dividends: Amount declared.............................................. $ 5 $ 5 Gross-up to pre-tax based on an effective rate of 32%........ $ 7 $ 7 Ratio of earnings to fixed charges and preferred dividends..... 2.95x 3.81x ====== ====== 26