EX-12.1 7 a07-5220_1ex12d1.htm EX-12.1

EXHIBIT 12.1

STEEL DYNAMICS, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(DOLLARS IN THOUSANDS)

 

 

 

2002

 

2003

 

2004

 

2005

 

2006

 

Interest expense, including amortization of debt issuance costs

 

$

38,513

 

$

38,568

 

$

45,355

 

$

40,277

 

$

39,178

 

Capitalized interest

 

11,413

 

7,820

 

6,935

 

730

 

1,686

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges (a)

 

49,926

 

46,388

 

52,290

 

41,007

 

40,864

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes and extraordinary items

 

124,477

 

75,437

 

475,033

 

360,626

 

631,555

 

Amortization of capitalized interest

 

2,932

 

3,859

 

3,670

 

4,073

 

4,814

 

Less capitalized interest

 

(11,413

)

(7,820

)

(6,935

)

(730

)

(1,686

)

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings (b)

 

165,922

 

117,864

 

524,058

 

404,976

 

675,547

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio (b) / (a)

 

3.32x

 

2.54x

 

10.02x

 

9.88x

 

16.53x

 

 

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.