EXHIBIT 12 TENNECO INC. AND CONSOLIDATED SUBSIDIARIES COMBINED WITH 50% OWNED UNCONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES <Table> <Caption> YEARS ENDED DECEMBER 31, ------------------------------------- 2007 2006 2005 2004 2003 ----- ----- ----- ----- ----- (DOLLARS IN MILLIONS) Income (loss) before cumulative effect of change in accounting principle........................ $ (5) $ 49 $ 56 $ 9 $ 25 Add: Interest expense............................... 164 136 133 178 146 Portion of rentals representative of the interest factor............................. 12 12 12 11 11 Income tax expense (benefit) and other taxes on income...................................... 83 5 26 (21) (6) Minority interest.............................. 10 6 2 4 6 Amortization of interest capitalized........... 3 3 2 1 1 Undistributed (earnings) losses of affiliated companies in which less than a 50% voting interest is owned........................... (1) (3) (1) -- 2 ----- ----- ----- ----- ----- Earnings as defined......................... $ 266 $ 208 $ 230 $ 182 $ 185 ===== ===== ===== ===== ===== Interest expense................................. $ 164 $ 136 $ 133 $ 178 $ 146 Interest capitalized............................. 6 6 3 2 4 Portion of rentals representative of the interest factor......................................... 12 12 12 11 11 ----- ----- ----- ----- ----- Fixed charges as defined.................... $ 182 $ 154 $ 148 $ 191 $ 161 ===== ===== ===== ===== ===== Ratio of earnings to fixed charges............... 1.46 1.35 1.55 0.95 1.15 ===== ===== ===== ===== ===== </Table> - -------- NOTE: Earnings were inadequate to cover fixed charges by $9 million for the year ended December 31, 2004. 142