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This excerpt taken from the ICI 20-F filed Apr 1, 2005. Exceptional items Exceptional items are material items which derive from events or transactions that fall within the ordinary activities of the Group and which individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size or incidence if the financial statements are to give a true and fair view.
These excerpts taken from the ICI 6-K filed Mar 16, 2005. Exceptional items
Exceptional items before tax for the year amounted to a loss of £3m (£14m loss after tax and minority interests) compared with a charge of £220m in 2003. Exceptional operating items charged against operating profit for the year were £5m and mainly related to the restructuring programme first announced in 2003. Following the divestment of Quest’s Food Ingredients business, the Group’s restructuring programme announced in 2003 was extended to deliver further reductions in costs below gross margin for Quest. The total cost for the extended programme is now expected to be £228m, comprising £168m exceptional cash expenditure and non-cash charges of £60m. The cumulative profit and loss charge for the programme to the end of 2004, was £209m; a further £19m is expected to be charged in 2005. The cash expenditure on the programme in 2004 was £71m, bringing the cumulative spend to £93m. The remaining cash spend of £75m is expected to be incurred primarily in 2005. The extended programme is expected to deliver £124m of cost benefit in 2006 and reduce headcount across the Group by around 2,300. During the second quarter the Group announced the completion of the sale of Quest’s Food Ingredients business to Kerry Group plc for £249m in cash, resulting in a loss on disposal before tax of £9m. The loss included attribution of goodwill, which was previously written off directly to reserves, of £154m. After tax, the exceptional loss on the transaction was £27m. Loss on sale or closure of operations also included an increased provision in relation to costs for the divestment of the Polyurethanes, Tioxide and selected Petrochemicals businesses and a loss on closure of the polyethylene business in Argentina. These were offset by profits on the sale of 18.9% of the issued shares of Pakistan PTA Ltd, on the sale of the nitrocellulose and trading businesses in India, and provision releases and income in relation to prior year divestments. Net
profit and earnings per share Net profit after exceptional items and goodwill amortisation increased to £210m, from £20m for 2003. Basic earnings per share after exceptional items and goodwill amortisation were 17.8p compared with 1.7p for 2003. Returns on capital employed
and on net assets
Exceptional items Exceptional items are material items which derive from events or transactions that fall within the ordinary activities of the Group and which individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size or incidence if the financial statements are to give a true and fair view.
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