1 EXHIBIT 12 TENNECO INC. AND CONSOLIDATED SUBSIDIARIES COMBINED WITH 50% OWNED UNCONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) (UNAUDITED) THREE MONTHS ENDED MARCH 31, -------------- 1998 1997 ----- ----- Net income.................................................. $ 75 $ 76 Add: Interest............................................... 56 45 Portion of rentals representative of interest factor... 13 13 Preferred stock dividend requirements of majority-owned subsidiaries.......................................... 7 5 Income tax expense and other taxes on income........... 47 33 Amortization of interest capitalized................... 1 1 Undistributed (earnings) losses of affiliated companies in which less than a 50% voting interest is owned..... -- (1) ----- ----- Earnings as defined............................... $ 199 $ 172 ===== ===== Interest.................................................... $ 56 $ 45 Interest capitalized........................................ -- 1 Portion of rentals representative of interest factor........ 13 13 Preferred stock dividend requirements of majority-owned subsidiaries on a pre-tax basis........................... 11 7 ----- ----- Fixed charges as defined.......................... $ 80 $ 66 ===== ===== Ratio of earnings to fixed charges.......................... 2.49 2.61 ===== =====