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) 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 ===== =====