Annual Report 2004 - FCC

21. COST ACCOUNTING STATEMENTS OF INCOME12.31.2004 12.31.2003Amount % Amount %Net sales 834,726 100.00 808,342 100.00+Other operating revenues 88,081 10.55 79,163 9.79+Variation in finished goods and work-inprocessinventories (59) (0.01) (100) (0.01)+Capitalized expenses of Group work on fixed assets 1,335 0.16 1,903 0.24Production value 924,083 110.70 889,308 110.02- Net purchases 67,537 8.09 72,278 8.94-Variation in inventories of merchandise, materialsand other consumables 11,502 1.38 (805) (0.10)- External and operating expenses 206,208 24.70 226,267 27.99- Personnel expenses 485,191 58.13 451,675 55.88Gross operating income 153,645 18.40 139,893 17.31- Depreciation and amortization expense 50,932 6.10 45,260 5.60- Period provision to reversion reserve 944 0.11 890 0.11- Bad debts and variation in operatingallowances 17,459 2.09 5,330 0.66Financial Statements. Fomento de Construcciones y Contratas, S.A.Net operating income 84,310 10.10 88,413 10.94+Financial revenues 195,780 23.45 109,146 13.50- Financial expenses 22,083 2.65 19,059 2.36-Variations in investment valuation allowances 4,115 0.48 2,493 0.31Financial income 169,582 20.32 87,594 10.83Income from ordinary activities 253,892 30.42 176,007 21.77+Gains on fixed assets andextraordinary revenues 747 0.09 1,170 0.14- Losses on fixed assets andextraordinary expenses 32,324 3.87 4,140 0.51-Variation in tangible fixed asset, intangible assetand control portfolio allowances 2,233 0.27 17,052 2.11Income before taxes 220,082 26.37 155,985 19.29- Corporate income tax 23,454 2.81 6,159 0.76Income after taxes 196,628 23.56 149,826 18.5322. EXPLANATION ADDED FOR TRANSLATION TO ENGLISHThese financial statements are presented on the basis of accounting principles generally accepted in Spain. Certain accounting practicesapplied by the Company that conform with generally accepted accounting principles in Spain may not conform with generally acceptedaccounting principles in other countries.247