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                                                                      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)
 


                                                                SIX MONTHS
                                                                  ENDED
                                                                 JUNE 30,
                                                              --------------
                                                              1998     1997
                                                              -----    -----
                                                                 
Net income..................................................  $ 212    $ 180
Add:
     Interest...............................................    117       98
     Portion of rentals representative of interest factor...     29       26
     Preferred stock dividend requirements of majority-owned
      subsidiaries..........................................     14       10
     Income tax expense and other taxes on income...........    118       82
     Amortization of interest capitalized...................     --        1
     Undistributed (earnings) losses of affiliated companies
      in which less than a 50% voting interest is owned.....     (3)      (1)
                                                              -----    -----
          Earnings as defined...............................  $ 487    $ 396
                                                              =====    =====
Interest....................................................  $ 117    $  98
Interest capitalized........................................     --        1
Portion of rentals representative of interest factor........     29       26
Preferred stock dividend requirements of majority-owned
  subsidiaries on a pre-tax basis...........................     22       16
                                                              -----    -----
          Fixed charges as defined..........................  $ 168    $ 141
                                                              =====    =====
Ratio of earnings to fixed charges..........................   2.90     2.81
                                                              =====    =====