Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Steel Dynamics Inc., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Unrelated parties	18,376,743)	9,587,691)	10,451,132)	11,801,609)	9,364,213)
Related parties	32,107)	13,791)	13,859)	20,230)	174,584)
Net sales	18,408,850)	9,601,482)	10,464,991)	11,821,839)	9,538,797)
Costs of goods sold	(13,046,426)	(8,166,754)	(8,934,007)	(9,499,025)	(7,956,783)
Gross profit	5,362,424)	1,434,728)	1,530,984)	2,322,814)	1,582,014)
Selling, general and administrative expenses	(643,976)	(477,450)	(436,498)	(416,640)	(394,631)
Profit sharing	(388,111)	(61,728)	(78,029)	(155,985)	(91,309)
Amortization of intangible assets	(29,232)	(28,999)	(29,577)	(27,780)	(29,193)
Asset impairment charges	—)	(19,409)	—)	—)	—)
Operating income	4,301,105)	847,142)	986,880)	1,722,409)	1,066,881)
Interest expense, net of capitalized interest	(57,209)	(94,877)	(127,104)	(126,620)	(134,399)
Other income (expense), net	(34,826)	(46,787)	15,561)	23,985)	2,753)
Income before income taxes	4,209,070)	705,478)	875,337)	1,619,774)	935,235)
Income tax expense	(962,256)	(134,650)	(197,437)	(363,969)	(129,439)
Net income	3,246,814)	570,828)	677,900)	1,255,805)	805,796)
Net (income) loss attributable to noncontrolling interests	(32,748)	(20,006)	(6,797)	2,574)	6,945)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Net Sales and Revenue Trends: Net sales experienced notable fluctuations over the five-year period. Starting at approximately 9.54 billion USD in 2017, net sales increased to over 11.8 billion USD in 2018, followed by a decline in 2019 and 2020 to around 10.5 billion and 9.6 billion USD respectively. A sharp rise occurred in 2021, with net sales reaching approximately 18.4 billion USD, the highest level in the given timeframe.
Cost of Goods Sold and Gross Profit: Costs of goods sold mirrored the sales trend, increasing from approximately 7.96 billion USD in 2017 to nearly 9.5 billion USD in 2018, then declining during 2019 and 2020, before surging again in 2021 to about 13.0 billion USD. Gross profit followed a similar pattern but with greater volatility. Gross profit rose substantially in 2018 to over 2.3 billion USD, declined significantly in subsequent years through 2020, and surged dramatically in 2021 to over 5.3 billion USD, suggesting improved profitability or margin expansion in the final year.
Operating Expenses and Profitability: Selling, general and administrative expenses showed a steady upward trend, increasing from roughly 395 million USD in 2017 to 644 million USD in 2021. Profit sharing costs exhibited variability, peaking in 2018 at about 156 million USD, then declining in 2019 and 2020 before rising notably again in 2021 to approximately 388 million USD. Amortization of intangible assets remained relatively stable around 29 million USD annually. Asset impairment charges were reported only in 2020 at about 19 million USD.
Operating Income: Operating income demonstrated volatility, increasing from around 1.07 billion USD in 2017 to a peak of 1.72 billion USD in 2018, followed by declines in 2019 and 2020, before a substantial increase in 2021 to over 4.3 billion USD. This sharp increase in 2021 aligns with the notable rise in gross profit, indicating operational improvements or favorable market conditions.
Interest and Other Income (Expense): Interest expense, net of capitalized interest, decreased steadily from approximately 134 million USD in 2017 to about 57 million USD in 2021, potentially indicative of lowered debt or improved financing terms. Other income (expense), net, varied from positive levels in early years (around 2.7 million to 24 million USD) to negative figures in 2020 and 2021, indicating either rising expenses or reduced ancillary income streams.
Income Before Taxes and Net Income: Income before income taxes followed a pattern similar to operating income, peaking in 2018 at nearly 1.62 billion USD, dropping through 2020, then surging in 2021 to approximately 4.2 billion USD. Income tax expense fluctuated, with a high of 364 million USD in 2018, a nadir in 2020 of about 135 million USD, and a significant increase to over 962 million USD in 2021, in line with the pre-tax income growth. Net income exhibited significant variations, rising from roughly 806 million USD in 2017 to 1.26 billion USD in 2018, then declining through 2020 before increasing sharply in 2021 to approximately 3.25 billion USD. This reflects overall profitability trends with marked improvement in 2021.
Minority Interests and Net Income Attributable to Shareholders: Net income attributable to noncontrolling interests showed small fluctuations, remaining relatively minor compared to net income, with negative figures in 2019 through 2021. The net income attributable to Steel Dynamics, Inc. closely follows the net income trend, reaching a peak of approximately 3.21 billion USD in 2021, consistent with the company’s improved overall financial performance that year.

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Steel Dynamics Inc. (NASDAQ:STLD)

Income Statement