UPDATE 1-Italcementi 2007 profit falls, sees flat 2008

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MILAN, March 26 (Reuters) - Italcementi (ITAI.MI: Quote, Profile, Research) posted a 6 percent fall in 2007 net profit on Wednesday due to the costs of expanding its business and forecast flat operating profit this year.

Italy's biggest cement maker said net profit fell to 612.5 million euros ($963.8 million), while operating profit fell 5.4 percent to 958 million euros due to higher amortisation and depreciation costs.

Italcementi said it "is pursuing with determination its goals of improving industrial efficiency and containing fixed costs," in the face of "a worsening macroeconomic scenario" and "sharp increases in costs".

Consolidated revenue edged up 2.5 percent to 6 billion euros.

Investments rose 29 percent to 999 million euros last year as the company expanded its business in China and Kuwait, and strengthened its position in North America.

Net debt rose by 8.6 percent to 2.42 billion euros.

The company said it would propose a stable dividend of 0.36 euros per share.

Shares closed up 0.53 percent at 12.342 euros as the overall Milan index edged 0.4 percent lower.

(Reporting by Valentina Za; Editing by Erica Billingham)