Sales breakdown 2004 - Solvay

(6) Other operating gains and losses
EUR million 2003 2004
Start-up, formation and preliminary study costs -13 -8
Cost of closures and demolitions -13 -13
Costs of trials and tests -6 -5
Amortization of consolidation differences -16 -17
Miscellaneous gains and losses 6 -11
Other operating gains and losses -42 -54
This item yielded a net charge of EUR 54 million, 29% higher than in 2003.
Start-up and preliminary study costs reduced by 39%. In 2003 these costs were particularly high, owing to the cost of starting
production of fluorinated products (Solkane®365mfc) in France.
The other headings in this category include the significantly higher cost of restructuring plans (EUR -27 million compared
with EUR – 8 million in 2003), the cost of competitiveness improvement plans, earnings on sales of underground cavities in
Germany (EUR 15 million compared with EUR 7 million) and results on sales of non-strategic pharmaceutical products,
down to EUR 12 million from EUR 16 million.
57
Global Annual Report Solvay 2004
(7) Other financial gains and losses
EUR million 2003 2004
Cost of discounting provisions -59 -65
Income from investments allocated by segment and interest on external financial receivables 20 15
Net foreign exchange gains and losses 4 5
Others* 57 17
Other financial gains and losses 22 -28
* Including valuation of the "put" option on our HDPE activities 45 11
The EUR 50 million reduction in this item compared with 2003 is explained essentially by the lower revaluation of the put
option of our HDPE activities, given their improvement in 2004 (see note 12 below). The item includes, however, higher cost
of discounting provisions (following their rise) and lower income on the loans to the polyethylene joint ventures with BP.
(8) REBIT
In a concern to clearly identify non-recurring elements and maintain comparability with past years’ operating earnings, the
Group has created an additional earnings level, labelled "Recurring Earnings before Interest and Taxes". This item increased by
17%.
EBIT is the earnings recorded from the ongoing activities of the Group prior to net debt expenses, income taxes and earnings
from companies accounted for by the equity method (our share of the polyethylene activity) and income from investments
which are not allotted to particular segments (Fortis and Sofina).