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Half-year results from some of the major global cement producers are starting to present a detour from the usual European doom-and-gloom and optimism for the BRIC economies (Brazil, Russia, India, China and South Africa) of recent years.

Yes, Europe is dragging balance sheets down (particularly certain countries), but some indicators are starting to stabilise following a good second quarter. Very possibly the cost cutting programmes of the multinational cement producers are starting to kick in. Alternatively, perhaps these cement markets have finally bottomed out.

Lafarge has suffered a bad six months with cement sales down by 6%. However, its sales decline in Western Europe has slowed down with the worst news now coming from Central & Eastern Europe. Cemex has reported a better second quarter in 2013 with overall sales up by 4%. It too can show softened declines in its European territories. Italcementi and its subsidiary Ciments Français both saw revenues falling in the half year but either at a reduced rate or with a slowdown in the rate that earnings before interest, taxes, depreciation and amortisation (EBITDA) are declining.

Only HeidelbergCement's results have resisted any direct signs of an improvement in Europe. Overall revenue has remained stable for the half year with its profit up year-on-year. In Europe its revenue reduction has worsened to 4.7% for the half year. However it did observe a 'significant' improvement in cement sales in the UK.

Meanwhile, one of the cement industry's more reliable markets in recent years – India – is showing signs for concern.

As our news roundup this week reports, the country's largest standalone cement producer, UltraTech, had its profits drop year-on-year by 13.5% to US$111m for the most recent quarter and its net sales actually dropped slightly. Holcim has also been active in India with the announcement that it is simplifying its corporate structure to cut costs. In addition Lafarge reported that its market growth in India was 'subdued', considerably down from the 24% growth in cement sales seen in that country in the first half of 2012.

The news from UltraTech and Lafarge suggest that the rate of growth of the Indian cement industry is slowing. The unanswered question from Holcim's activity in India is whether they are doing it to counteract European losses or to counteract a loss of profitability in India.

Holcim's half-year results will make interesting reading when they are released in mid-August 2013 and may help to decide whether the worst is over in Europe.

India: JK Cement has appointed Shri Jagendra Swarup as an additional director on the board of the company until its next annual general meeting.

Germany: HeidelbergCement has announced improved operating results in the second quarter of 2013 despite claims that poor weather conditions in Europe and North America had hampered its performance. The group's revenue was stable at Euro3.8bn for the three months to 30 June 2013 and at Euro6.56bn for the first six months of 2013.

HeidelbergCement's net profit for the second quarter of 2013 was Euro469m, a 92% increase year-on-year from Euro245m in the second quarter of 2012. Over the first half of 2013, its profit rose by Euro285m from just Euro86m in the first half of 2012.

"HeidelbergCement has successfully continued the positive earnings development in the second quarter despite challenging conditions," said Dr Bernd Scheifele, chairman of the managing board. "The measures that we introduced to improve margins are showing results. We were able to implement price increases in our principal markets and our efficiency improvement programmes are progressing according to plan."

The group saw regional variation in its cement sales during the period under review. While construction activity in Europe and parts of North America was hindered due to heavy rain and flooding in some areas, HeidelbergCement's cement deliveries benefited from the sustained increase in demand in its Asian and African markets as well as from the continued economic recovery in other parts of North America, especially in the southern US.

During the second quarter, the group's cement and clinker sales volumes dropped slightly by 0.8% to 24.3Mt from 24.5Mt in 2012. The Asia-Pacific group area experienced the strongest growth in sales volumes, followed by North America and Africa-Mediterranean Basin. Cement sales volumes in the Western and Northern Europe group area remained broadly stable. Deliveries in the UK were more than 10% above the values of 2012 due to the emerging recovery in private residential construction. Sales volumes in Germany and in the bordering countries of eastern Europe were adversely affected by heavy rainfall and flooding.

The Eastern Europe-Central Asia group area recorded a decline in sales volumes of more than 10%. Poland, Romania and the Czech Republic were the most severely affected. In addition, the harsh austerity policies of these countries had a negative effect on public infrastructure construction. In the first half of 2013 cement and clinker sales volumes decreased slightly by 0.8% to 42.4Mt from 42.7Mt in 2012.

Looking ahead, in North America, HeidelbergCement still expects ongoing economic recovery and consequently a further increase in demand for building materials, especially from residential construction and the raw materials industry. A three-layered economic development is anticipated in Europe and central Asia. It says that the markets in Germany, northern Europe and the UK should continue to develop positively and expects those in central Asia to remain stable. In Benelux and eastern Europe a continuing weak development of the economy and demand for building materials is anticipated. In Asia and Africa, the group still expects sustained positive demand.

Italy: Italcementi has reported that its revenue fell by 6.2% to Euro2.16bn for the first half of 2013 from Euro2.30bn in the same period in 2012. The Italian-based cement producer commented that, despite the decrease in sales volumes, its revenue reduction was smaller (3.6%) in the second quarter of 2013.

"Our programme to contain fixed costs together with close control of variable costs enabled us to lower our breakeven point, slightly ahead of our targets, despite continuing difficulties in market conditions, especially in Italy," said Italcementi group chief operating officer Giovanni Ferrario.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 10.6% to Euro299m from Euro334m. The group posted a loss for the period of Euro43.3m compared with a profit of Euro1.3m in the first half of 2012, when gains of Euro8.6m were reported on the sale of its subsidiaries Afyon and Fuping. Net debt for the period was broadly unchanged for the period at Euro2bn.

Overall cement sales fell by 7.1% to 21.8Mt. By region, cement sales fell by 12.4% to 7.2Mt in Central Western Europe and by 11.7% to 6.9Mt in Emerging Europe, North Africa and Middle East. Cement sales rose by 1% to 2Mt in North America and by 5.3% in Asia. In the cement business, for the second quarter the group reported a significant reduction in the decline in Europe and Morocco, positive performance in North America and stability in sales in Asia. Sales volumes in Egypt were affected by difficulties in fuel procurement. A particular poor performance in Italy was singled out.

In its outlook, Italcementi speculated that its results in the second half of 2013 should be in line with the second half of 2012 due to market improvements in selected countries and the impact of cost cutting exercises, particularly in Italy and Spain. However, it warned that full-year profitability would be hit by the poor first quarter of 2013.

France: Ciments Français' earnings before interest, taxes, depreciation and amortisation (EBITDA) have slowed their reduction year-on-year to 5.2% in the first half of 2013. The Italcementi subsidiary reported that sales recovered in the second quarter of 2013.

In the first half of 2012 EBITDA fell by 17.1% year-on-year. In the first half of 2013 EBITDA fell year-on-year by 5.2% to Euro305.4m from Euro323.6m from the same period in 2012. Revenue for the half year decreased by 4.2% to Euro1.83bn from Euro1.91bn. By quarter, revenue fell by 7.3% in the first quarter of 2013 but only fell by 1.6% in the second quarter of 2013.

Cement sales for the first half of 2013 fell by 4.8% to 19.2Mt. By region, cement sales fell by 5.8% to 4.5Mt in Western Europe and by 11.7% in Emerging Europe, North Arica and Middle East. Sales rose by 1% in North America and by 5.3% in Asia. By country, cement sales were particularly down in Egypt, due to fuel supply issues, and in Morocco.

In its outlook Ciments Français expected that its full year results would be comparable to those in 2012. However, market trends in territories such as Egypt present significant variables in making forecasts.

Spain: Cementos Molins has reported a drop of 58% in its profit for the first half of 2013 to Euro8.3m. The Spanish cement producer announced a loss of Euro22.4m which was offset by a Euro30.7m net profit registered abroad. It reported sales of Euro416m. The company's net debt was reduced year-on-year by Euro7m to Euro309m.

Nepal: The Nepalese government has released plans to spend US$4m on building access roads to 14 cement plants. According to the Katmandu Post it is part of a US$12.5m industrial promotion policy to build roads, electricity transmission lines and sub-stations for cement plants across the country.

"Only those cement factories that produce clinker by using local limestone will receive the facility," said Industry Secretary Krishna Gyanwali. The government plans to complete construction of access roads for five cement factories - Ghorahi Cement, Rolpa Cement, United Cement, Shivam Cement and Nigale Cement - within the current fiscal year.

Atmaram Murarka, president of the Cement Manufacturers' Association, commented that previous government infrastructure development upgrades had not occurred. The government originally announced the scheme in the 2008 – 09 fiscal year.

Tanzania: The Tanzanian government has formed a seven person team to investigate alleged subsidies, tax evasion and the quality of cement imported from Pakistan. Minister for Industry and Trade, Dr Abdallah Kigoda, said that the team will help to understand the quality, manufacturing cost and selling price of cement from Pakistan to help in creation of fair competition in the local market.

The team comprises experts from the Ministry of Finance and Economic Affairs, Ministry of Industry and Trade, local cement manufacturers, Confederation of Tanzania Industries (CTI), Tanzania Bureau of Standards, Fair Competition Commission and Tanzania Revenue Authority.

In 2012, over 200,000t of cement was imported from Pakistan to Tanzania and in 2013 over 300,000t had been imported, according to Director of Policy and Advocacy with CTI, Hussein Kamote. Currently Tanzania has a demand for cement of 4Mt/yr with a cement production capacity of 3Mt/yr.

China: China produced 1.1Bt in the first half of 2013, a year-on-year increase of 9.7%, according to the latest statistics released by the National Development and Reform Commission (NDRC). The cement inventory of the country's major cement producers increased by 0.3% year-on-year to 27.76Mt. Profit for the cement industry remained flat with a 1% increase year-on-year to US$2.49bn.

Meanwhile the government is considering a detailed plan to eliminate outdated industrial production capacity, according to the China Securities Journal. The plan is expected to eliminate outdated capacity in the cement, steel, electrolytic aluminum, plate glass and shipbuilding sectors.

Zhu Hongren, chief engineer of the Ministry of Industry and Information Technology (MIIT), confirmed that MIIT and the NDRC are currently working on the plan. The plan will boost the sectors' utilisation of existing capacity by setting industry access standards and eliminating outdated capacity. To ease overcapacity in affected industries, MIIT ordered in late July 2013 around 1400 companies in 19 sectors to eliminate outdated production capacity by September 2013 and eliminate excess capacity by the end of 2013.

India: UltraTech Cement has reported a 13.5% drop in profit after tax to US$111m for the quarter ending on 30 June 2013. The cement producer, part of the Aditya Birla Group, offered no explanation for the decrease in profit. It did state that the quarter saw logistic and raw materials costs rise, linked to rises in railway freight and diesel prices.

The company's net sales for the quarter fell by 2% year-on-year to US$820m from US$837m. Profit before interest, depreciation and tax fell by 10% to US$205m from US$228m. Combined domestic cement and clinker sales were 9.94Mt. In its outlook UltraTech expected business to be challenging depending on housing demand and infrastructure spending.

In its development plans UltraTech reported that it has commissioned its 3.3Mt clinker plant in Karnataka. US$350m has been set aside to set up grinding plants, taking the company current capital expenditure total to US$2.25bn. Cement production capacity is planned to rise by 10Mt/yr by 2015 bringing the company's total capacity to 64.45Mt/yr.