EX-12.1 6 b404509_ex12-1.htm COMPUTATION OF RATIO OR EARNINGS TO FIXED CHARGES Prepared and filed by St Ives Burrups

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EXHIBIT 12.1

STEEL DYNAMICS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)

    2000   2001   2002   2003   2004  
   
 
 
 
 
 
Interest expense, including amortization of debt issuance costs
   $ 21,038   $ 21,015   $ 38,513   $ 38,568   $ 45,355  
Capitalized interest
     17,477     13,993     11,413     7,820     6,935  
   
 
 
 
 
 
Fixed charges (a)
     38,515     35,008     49,926     46,388     52,290  
Income before taxes and extraordinary items
     84,485     5,113     124,477     75,437     475,033  
Amortization of capitalized interest
     1,501     1,597     2,932     3,859     3,670  
Less capitalized interest
     (17,477 )   (13,993 )   (11,413 )   (7,820 )   (6,935 )
   
 
 
 
 
 
Adjusted earnings (b)
   $ 107,024   $ 27,725   $ 165,922   $ 117,864   $ 524,058  
   
 
 
 
 
 
Ratio (b) / (a)
     2.78x     0.79x     3.32x     2.54x     10.02x  
   
 
 
 
 
 

For purposes of calculating our ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes and extraordinary items, adjusted for the portion of fixed charges deducted from the earnings, plus amortization of capitalized interest. Fixed charges consist of interest on all indebtedness, including capitalized interest, and amortization of debt issuances costs. In 2001, our earnings were insufficient to cover our fixed charges by $7.3 million.

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