EXHIBIT 12.1
STEEL DYNAMICS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
| 1999 | 2000 | 2001 | 2002 | 2003 | ||||||||||||||||
Interest
expense, including amortization of debt issuance costs |
$ | 22,919 | $ | 21,038 | $ | 21,015 | $ | 38,513 | $ | 38,568 | ||||||||||
Capitalized
interest |
13,196 | 17,477 | 13,993 | 11,413 | 7,820 | |||||||||||||||
Fixed
charges (a) |
36,115 | 38,515 | 35,008 | 49,926 | 46,388 | |||||||||||||||
Income
before taxes and extraordinary items |
65,279 | 84,485 | 5,113 | 124,477 | 75,437 | |||||||||||||||
Amortization
of capitalized interest |
1,365 | 1,501 | 1,597 | 2,932 | 3,859 | |||||||||||||||
Less
capitalized interest |
(13,196 | ) | (17,477 | ) | (13,993 | ) | (11,413 | ) | (7,820 | ) | ||||||||||
Adjusted
earnings (b) |
$ | 89,563 | $ | 107,024 | $ | 27,725 | $ | 165,922 | $ | 117,864 | ||||||||||
Ratio
(b) / (a) |
2.48 | x | 2.78 | x | 0,79 | x | 3.32 | x | 2.54 | x | ||||||||||
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.