EXHIBIT 12 CASE CORPORATION AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS (dollars in millions) Three Months Ended March 31, ----------- 1999 1998 ---- ----- Net income (loss)................................................. $(48) $ 69 Add: Interest........................................................ 75 47 Interest capitalized............................................ 1 -- Portion of rentals representative of interest factor............ 3 3 Income tax expense (benefit) and other taxes on income.......... (11) 33 Fixed charges of unconsolidated subsidiaries.................... 1 1 ---- ----- Earnings as defined........................................... $ 21 $ 153 ==== ===== Interest.......................................................... $ 75 $ 47 Interest capitalized.............................................. 1 -- Amortization of capitalized debt expense.......................... 1 -- Portion of rentals representative of interest factor.............. 3 3 Fixed charges of unconsolidated subsidiaries...................... 1 1 ---- ----- Fixed charges as defined...................................... $ 81 $ 51 ==== ===== Preferred dividends: Amount declared................................................. $ 2 $ 2 Gross-up to pre-tax based effective rates of 19% and 32%, respectively................................................... $ 2 $ 3 Ratio of earnings to fixed charges and preferred dividends........ -- 2.83x ==== ===== Deficiency of earnings to fixed charges........................... $(60) -- ==== ===== 23