Lafarge reports 4% upturn in sales

Lafarge has reported strong growth during 2007, with sales up 4% to £13bn thanks to high performance in its cement and aggregates division on North America, despite the slowdown in the US residential market.

The materials giant posted a 41% reduction in operating income from gypsum products, while cement grew by 18% and aggregates and concrete by 28%.

It said that the programme to build 45 million tonnes of new cement capacity by 2010 was on course, with five million tonnes from its new acquisition Orascom and a further 14 million tonnes planned to start in 2008.

Bruno Lafont, chairman and chief executive officer at Lafarge, said: "Cement demand worldwide has experienced uninterrupted growth over nearly 20 years, regardless of economic fluctuations.

"By building new capacity in fast-growing markets and thanks to the acquisition of Orascom Cement, Lafarge is ideally positioned to benefit fully from this growth."