partnering for the future costs as we are able to source much of our raw materials from our own mines. Gross profit increased 61% as a result of higher fertilizer selling prices, partially offset by increases in imported raw material costs. The increase in soybean oil prices also resulted in higher selling prices for other softseed products as they follow the trend of soybean oil prices primarily in North America and Eastern Europe. Volumes increased primarily in North America as a result of stronger demand. Cost of goods sold, excluding Lesieur, increased 36% primarily due to increases in sales volumes and higher raw material costs. Included in cost of goods sold in 2004 were $7 million of impair- ment charges relating to write-downs of certain refining and packaging facilities in our North and South American edible oil operations and in 2003, a $1 million curtailment gain relating to certain postretirement healthcare benefit plans. Gross profit, excluding Lesieur, increased 3% primarily due to increases in sales volumes and margin expansion in Eastern Europe and Canada as a result of the higher average selling prices. In Europe and Canada, softseed product selling prices increased in response to higher soy commodity prices. SG&A increased 53% primarily due to bad debt provisions associated with the higher selling prices, increases in employee compensation expense because of higher salaries and certain other labor and legal provisions. In addition, 2003 benefited from non-recurring credits relating to social health and welfare taxes in Brazil and lower bad debt expense. Segment operating profit increased 54% primarily due to the increase in gross profit, partially offset by the increase in SG&A, higher foreign exchange losses as a result of costs associated with managing foreign exchange exposure and higher interest expense associated with increases in working capital levels. Edible Oil Products Segment The table below outlines our edible oil products segment results for 2004 and 2003. The results for 2003 include the results of Lesieur, a French bottled oil producer, which we sold to our Saipol joint venture in July 2003. In addition, for comparative purposes, the 2003 results of our edible oil products segment excluding Lesieur and the results of Lesieur alone are also presented. SG&A, excluding Lesieur, decreased 1% primarily due to lower marketing expenses. SG&A in 2003 benefited from a $1 million curtailment gain relating to certain postretirement healthcare benefit plans. Segment operating profit, excluding Lesieur, increased 5% primarily due to the improvement in gross profit margins and increases in sales volumes. Milling Products Segment Milling products segment net sales increased 7% primarily due to a 15% increase in sales volumes. Corn milling volumes increased primarily due to higher sales to U.S. commercial customers, higher sales under the U.S. govern- ment food aid program and the addition of a corn milling facility acquired in the latter half of 2003. The increase in wheat milling volumes was primarily due to the addition of our industrial flour business which resulted from the asset exchange of Bunge’s Brazilian retail flour assets for J. Macêdo S.A.’s industrial flour assets and $7 million in cash in March 2004. Cost of goods sold increased 6% due to the increase in sales volumes and higher raw material costs. Gross profit increased 14% primarily due to the increase in sales volumes. Edible oil products segment net sales, excluding Lesieur, increased 33% primarily due to a 23% increase in sales volumes and higher average selling prices. Increases in selling prices were primarily due to higher raw material costs, principally crude soybean oil. Segment operating profit increased by 37% as a result of the improvement in gross profit. 37 Year Ended December 31, (US$ in millions, except volumes) 2004 2003 2003 2003 Excluding Actual Actual Lesieur Lesieur Volumes (in thousands  of metric tons) 4 4,,7 72 28 8 4,100 3,845 255 Net sales $ $ 3 3,,8 87 72 2 $ 3,184 $ 2,909 $ 275 Cost of goods sold ((3 3,,6 61 15 5)) (2,900) (2,660) (240) Gross profit 2 25 57 7 284 249 35 Selling, general and  administrative expenses ((1 15 57 7)) (180) (158) (22) Foreign exchange gain 5 – – – Interest income 6 6 6 – Interest expense ((3 32 2)) (24) (22) (2) Segment operating profit $ 7 79 9 $ 86 $ 75 $ 11