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, ------------ 1999 1998 ---- ---- Income from continuing operations........................... $105 $175 Add: Interest............................................... 109 97 Portion of rentals representative of interest factor... 14 11 Preferred stock dividend requirements of majority-owned subsidiaries.......................................... 13 14 Income tax expense (benefit) and other taxes on income................................................ 68 92 Amortization of interest capitalized................... -- -- Undistributed (earnings) losses of affiliated companies in which less than a 50% voting interest is owned..... -- -- ---- ---- Earnings as defined............................... $309 $389 ==== ==== Interest.................................................... $109 $ 97 Interest capitalized........................................ -- -- Portion of rentals representative of interest factor........ 14 11 Preferred stock dividend requirements of majority-owned subsidiaries on a pre-tax basis........................... 22 22 ---- ---- Fixed charges as defined.......................... $145 $130 ==== ==== Ratio of earnings to fixed charges.......................... 2.13 2.99 ==== ====