Strength. Performance. Passion. Third Quarter Interim Report 2009 Holcim Ltd Elbe Philharmonic Hall, Hamburg. © Herzog & de Meuron Architects Holcim Ltd Zürcherstrasse 156 CH-8645 Jona/Switzerland Phone +41 58 858 86 00 Fax +41 58 858 86 09 info@holcim.com www.holcim.com Corporate Communications Roland Walker Phone +41 58 858 87 10 Fax +41 58 858 87 19 communications@holcim.com Investor Relations Bernhard A. Fuchs Phone +41 58 858 87 87 Fax +41 58 858 80 09 investor.relations@holcim.com The German version is binding © 2009 Holcim Ltd Printed in Switzerland on FSC paper Key figures Group Holcim January–September 2009 2008 ±% ±% like-for-like Annual cement production capacity million t 198.5 194.4 1 +2.1 +2.6 Sales of cement million t 99.1 108.8 –8.9 –7.3 Sales of mineral components million t 2.5 3.7 –32.4 –32.4 Sales of aggregates million t 103.2 127.3 –18.9 –20.6 Sales of ready-mix concrete million m 3 30.4 37.0 –17.8 –19.5 Sales of asphalt million t 8.1 10.3 –21.4 –21.4 Net sales million CHF 15,774 19,340 –18.4 –10.3 Operating EBITDA million CHF 3,614 4,365 –17.2 –7.3 Operating EBITDA margin % 22.9 22.6 EBITDA million CHF 4,033 4,658 –13.4 Operating profit million CHF 2,337 3,087 –24.3 –13.6 Operating profit margin % 14.8 16.0 Net income million CHF 1,577 2,107 –25.2 –16.5 Net income margin % 10.0 10.9 Net income – equity holders of Holcim Ltd million CHF 1,200 1,739 –31.0 –22.3 Cash flow from operating activities million CHF 2,192 1,658 +32.2 +47.2 Cash flow margin % 13.9 8.6 Net financial debt million CHF 12,905 15,047 1 –14.2 –14.1 Total shareholders’ equity million CHF 21,599 17,974 1 +20.2 Gearing 2 % 59.7 83.7 1 Personnel 80,330 86,713 1 –7.4 –6.9 Earnings per dividend-bearing share 3 CHF 4.10 6.10 –32.8 Fully diluted earnings per share 3 CHF 4.09 6.09 –32.8 Principal key figures in USD (illustrative) 4 Net sales million USD 14,211 18,245 –22.1 Operating EBITDA million USD 3,256 4,118 –20.9 Operating profit million USD 2,105 2,912 –27.7 Net income – equity holders of Holcim Ltd million USD 1,081 1,641 –34.1 Cash flow from operating activities million USD 1,975 1,564 +26.3 Net financial debt million USD 12,529 14,195 1 –11.7 Total shareholders’ equity million USD 20,970 16,957 1 +23.7 Earnings per dividend-bearing share 3 USD 3.69 5.75 –35.8 Principal key figures in EUR (illustrative) 4 Net sales million EUR 10,446 12,012 –13.0 Operating EBITDA million EUR 2,393 2,711 –11.7 Operating profit million EUR 1,548 1,917 –19.2 Net income – equity holders of Holcim Ltd million EUR 795 1,080 –26.4 Cash flow from operating activities million EUR 1,452 1,030 +41.0 Net financial debt million EUR 8,546 10,099 1 –15.4 Total shareholders’ equity million EUR 14,304 12,063 1 +18.6 Earnings per dividend-bearing share 3 EUR 2.72 3.79 –28.2 1 As of December 31, 2008. 2 Net financial debt divided by total shareholders’ equity. 3 EPS calculation based on net income attribut- able to equity holders of Holcim Ltd weighted by the average number of shares. The weighted average number of shares outstand- ing was retrospec- tively increased by 5 percent to reflect the 1:20 ratio of the stock dividend and by an additional 3.6 per- cent to reflect the discount for existing share- holders in the rights issue for all periods presented. 4 Statement of income figures translated at average rate; statement of financial position figures at closing rate. 2 Third Quarter 2009 Holcim quickly reacted to the difficult market environment with strict cost management Higher net income like-for-like in the third quarter despite lower sales volumes Higher operating EBITDA margin in the third quarter Cash flow from operating activities significantly increased and free cash flow doubled Acquisition in Australia strengthens Holcim in an attractive market The Group will start the new financial year from a strong position and grow again Dear Shareholder In the mature markets, demand for building materials decreased further in the third quarter. However, in many emerging markets the construction industry continued to grow, particularly in Asia, driven by the strong market growth in China and India. Therefore, operating EBITDA development remained clearly negative in Europe. Also North America has yet to see a pick-up – however, the third quarter performance was better than in the first six months. Group region Africa Middle East nearly maintained its position compared with the previous year. Latin America and primarily Asia Pacific achieved solid organic growth. The current results have only been possible because Holcim reacted quickly and decisively to the macroeconomic environment and took the following measures: Holcim has reduced production capacity by roughly 10 million tonnes of cement in markets with weak demand. This was achieved through temporary and permanent plant closures. Also numerous operations in the aggre- gates and ready-mix concrete business were shut down. Throughout the Group, Holcim continued to implement the extensive cost-cutting program, with a large number of cost-reduction measures taken along the value chain. In the period from January to September, Holcim saved CHF 573 million in fixed costs. These restructuring measures unavoidably involved job losses, which were conducted in such a way as to minimize the social impact. Also in focus was maintaining the liquidity and lengthening the average term of debt financing. As of Septem- ber 30, cash liquidity reached CHF 5.7 billion, which is well above the internal target. However, the payment for the acquisition in Australia in the amount of CHF 1.7 billion was only made in the fourth quarter. By the end of October, bonds totaling CHF 5 billion were placed in the capital market. Despite the somewhat difficult market environment, Holcim continued to pursue its strategic expansion program as planned and commissioned 5.6 million tonnes of cement capacity in the course of the year. This allows the Group to grow in attractive markets and gain in efficiency. The acquisition of Cemex Australia, which you approved by a capital increase, also shows great promise. The new Group company now operates under the name of Holcim Australia and will be fully consolidated as of October 1. It gives Holcim an optimal position in cement, aggregates, ready-mix concrete and concrete products on a continent that is back on the growth path. 3 Shareholders’ Letter 4 Third Quarter 2009 Consolidated cement deliveries decreased by 8.9 percent to 99.1 million tonnes in the first nine months. Sales of aggregates also fell by 18.9 percent to 103.2 million tonnes, and volumes of ready-mix concrete sold were down by 17.8 percent to 30.4 million cubic meters. Asphalt sales amounted to 8.1 million tonnes, which represents a decrease of 21.4 percent. Group net sales declined by 18.4 percent to CHF 15.8 billion, impacted mainly by lower volumes. Operating EBITDA fell by 17.2 percent to CHF 3.6 billion, and the related margin reached 22.9 percent, which is higher than the corresponding previous year’s figure of 22.6 percent – a strong signal that the Group has gained in efficiency. In particular, the cost-cutting drive, lower energy costs and the largely stable price situation had a positive impact on the income statement. A contribution of CHF 61 million came from the sale of CO2 emission certifi- cates by some European Group companies due to reduced cement production. The development of currency exchange rates against the Swiss franc was unfavorable. Due to the strict management of net current assets, cash flow from operating activities came to CHF 2.2 billion, 32.2 percent higher than the previous year’s figure, and the free cash flow doubled to CHF 2 billion. Net income decreased by 25.2 percent to CHF 1.6 billion. Net income attributable to shareholders of Holcim Ltd declined by 31 percent to CHF 1.2 billion. The downturn in profit primarily reflects the poor business development in Europe. Reductions in sales volumes decreased in the third quarter. Due to cost savings, operating EBITDA and net income increased like-for-like by 5.5 percent and 13.7 percent respectively. Group Jan–Sept Jan–Sept ±% ±% 2009 2008 like-for-like* Sales of cement in million t 99.1 108.8 –8.9 –7.3 Sales of aggregates in million t 103.2 127.3 –18.9 –20.6 Sales of ready-mix concrete in million m 3 30.4 37.0 –17.8 –19.5 Sales of asphalt in million t 8.1 10.3 –21.4 –21.4 Net sales in million CHF 15,774 19,340 –18.4 –10.3 Operating EBITDA in million CHF 3,614 4,365 –17.2 –7.3 Operating profit in million CHF 2,337 3,087 –24.3 –13.6 Net income in million CHF 1,577 2,107 –25.2 –16.5 Net income – equity holders of Holcim Ltd – in million CHF 1,200 1,739 –31.0 –22.3 Cash flow from operating activities in million CHF 2,192 1,658 +32.2 +47.2 Group July–Sept July–Sept ±% ±% 2009 2008 like-for-like Sales of cement in million t 34.0 36.3 –6.3 –4.7 Sales of aggregates in million t 40.7 47.6 –14.5 –15.1 Sales of ready-mix concrete in million m 3 11.1 13.4 –17.2 –17.2 Sales of asphalt in million t 3.8 4.5 –15.6 –15.6 Net sales in million CHF 5,692 6,906 –17.6 –8.9 Operating EBITDA in million CHF 1,471 1,563 –5.9 +5.5 Operating profit in million CHF 1,031 1,123 –8.2 +4.0 Net income in million CHF 790 769 +2.7 +13.7 Net income – equity holders of Holcim Ltd – in million CHF 673 673 – +11.0 Cash flow from operating activities in million CHF 1,387 994 +39.5 +53.3 * Factoring out changes in the scope of consolidation and currency translation effects. 5 Shareholders’ Letter In the UK, Aggregate Industries UK sold significantly less aggregates and ready-mix concrete. However, the situation stabilized to a certain degree in the third quarter. A contributory factor was the major construction activity in the run-up to the 2012 Olympic Games in London. Resurfacing work on the road systems supported deliveries of asphalt. Volume developments at Holcim Spain remained unfavorably influenced by the residential construction crisis. In France and Belgium, Holcim sold less cement and aggregates. The reason for this was the continued challeng- ing situation in the construction sector and the completion of significant infrastructure projects. There was evidence in Belgium of increased competition in the ready-mix concrete business. Holcim Germany also felt the weak domestic construction activity and sales volumes decreased in all segments. The company only increased cement exports. Government programs to cushion the ailing industrial and commercial construction sector have yet to impact on demand. Holcim Switzerland continued to benefit from robust construction activity. The order volume remained at a high level, particularly in the large conurbations. Cement and ready-mix concrete sales virtually reached the previous year’s level, and the company sold more aggregates. In Northern Italy, the building materials markets remained under pressure. Europe Jan–Sept Jan–Sept ±% ±% 2009 2008 like-for-like Sales of cement in million t 20.9 26.2 –20.2 –21.0 Sales of aggregates in million t 59.6 74.1 –19.6 –22.8 Sales of ready-mix concrete in million m 3 13.0 16.1 –19.3 –24.8 Sales of asphalt in million t 4.2 5.0 –16.0 –16.0 Net sales in million CHF 5,664 7,927 –28.5 –22.1 Operating EBITDA in million CHF 1,035 1,715 –39.7 –33.5 Operating profit in million CHF 535 1,227 –56.4 –51.8 Europe July–Sept July–Sept ±% ±% 2009 2008 like-for-like Sales of cement in million t 7.9 9.1 –13.2 –13.2 Sales of aggregates in million t 21.6 25.4 –15.0 –17.3 Sales of ready-mix concrete in million m 3 4.7 5.8 –19.0 –20.7 Sales of asphalt in million t 1.5 1.8 –16.7 –16.7 Net sales in million CHF 2,061 2,783 –25.9 –18.8 Operating EBITDA in million CHF 476 600 –20.7 –12.3 Operating profit in million CHF 311 429 –27.5 –20.5 Higher cost efficiency in Europe In the European Union, there were growing signs of an economic stabilization in the third quarter. France and Germany returned to modest economic growth. Nevertheless, the situation in Europe’s building materials markets remained for the most part difficult. In particular, Spain, the UK, Italy and Eastern European countries including Russia and Azerbaijan experienced a weak level of private and public construction activity. By contrast, the construction level held up well in Switzerland. 6 Third Quarter 2009 The situation in Eastern and Southeastern Europe was influenced by the heavy economic slump. Despite the fact that Slovakia, the Czech Republic and Hungary somewhat recovered after the decline in the first half of the year, the demand for building materials was nevertheless restrained. Holcim Hungary had to mothball a kiln line at its Lábatlan site. Holcim Romania saw all segments fall short of last year’s volumes. The situation was particularly difficult in Bulgaria, where not only weak construction activity but also large volumes of cement imports from Turkey weighed on the cement industry. To reduce costs, clinker production was mothballed in the Pleven plant. In Russia, the recession weakened to a certain extent in the third quarter. In Moscow at least, there was a very slight increase in demand for building materials, which meant the decrease in cement volumes at Group compa- ny Alpha Cement was less dramatic than in the previous quarters. However, there was still a significant decline in cement volumes from January through September. In the Shurovo plant, clinker production was stopped until the new kiln line comes on stream in the second half of 2010. The necessary clinker will be obtained from the Volsk plant, situated further south. In Azerbaijan, both higher imports and the crisis in residential and industrial construction put pressure on the sales of Garadagh Cement. In Group region Europe, delivery volumes declined. Nonetheless, the reduction slowed in all segments in the third quarter. In the first nine months, cement sales fell by 20.2 percent to 20.9 million tonnes, while sales of aggregates decreased by 19.6 percent to 59.6 million tonnes. Ready-mix concrete volumes declined by 19.3 percent to 13 million cubic meters. Operating EBITDA decreased, also due to exchange rate fluctuations, by 39.7 percent overall to CHF 1 billion. However, the broad and consistently implemented cost-cutting measures provided some relief to the income statement. In particular, the financial results of Aggregate Industries UK, Holcim Spain and Holcim France Benelux remained significantly below the figures of last year. The operating result was also impacted by weaker results from the Eastern and Southeastern European companies, including Alpha Cement and Garadagh Cement. The internal operating EBITDA development was –33.5 percent. Compared with the previous quarters’ results, the decline slowed. Better third quarter in North America Various indicators suggest that the North American economy has bottomed out, but the US construction indus- try has yet to see any upturn. The situation was somewhat more robust in Canada. . North America Jan–Sept Jan–Sept ±% ±% 2009 2008 like-for-like Sales of cement in million t 8.3 11.2 –25.9 –25.9 Sales of aggregates in million t 29.7 37.7 –21.2 –22.0 Sales of ready-mix concrete in million m 3 4.1 5.5 –25.5 –27.3 Sales of asphalt in million t 3.9 5.2 –25.0 –25.0 Net sales in million CHF 2,626 3,373 –22.1 –22.6 Operating EBITDA in million CHF 328 444 –26.1 –25.7 Operating profit in million CHF 72 207 –65.2 –60.4 Residential construction in the US has stabilized at a low level. The number of new housing starts rose slightly over the summer months. However, the inventory of real estate for sale remained high and the vacancy rate in the commercial real estate area has increased. The only momentum has come from industrial construction sites together with new clinics and hospitals. The wait-and-see attitude in the run-up to the launch of the stimulus programs to expand the country’s infrastructure has likewise affected the demand for building materials. Holcim US again experienced volume losses in all market regions in the third quarter. The east of the country, the Great Lakes region and Texas have been strongly affected. Flooding along the Mississippi and Missouri rivers also impacted cement demand. The low level of construction activity put pressure on the business of Aggregate Industries US. Less building materials were sold than in the previous year’s period. However, asphalt sales benefited somewhat from road construction in the third quarter. As a result of weak domestic demand and a lack of export opportunities to the US, Holcim Canada sold less cement. In Ontario, commercial and industrial construction declined in particular. In Quebec, commercial and infrastructure construction cushioned the decline in demand in other segments. The weakness in private house- building had a negative effect on the sale of aggregates and ready-mix concrete, particularly in Ontario and Western Canada. The three North American Group companies responded to the difficult market environment by reducing produc- tion early in the downturn. Two cement plants of Holcim US were shut down and two others mothballed. In both countries, Holcim also reduced the number of aggregates plants and ready-mix concrete facilities including its fleet of mixer and pump trucks. In the administrative area, a number of rigorous cost-cutting measures were implemented. On a consolidated basis, cement deliveries in North America declined by 25.9 percent to 8.3 million tonnes. Sales of aggregates dropped by 21.2 percent to 29.7 million tonnes and ready-mix concrete sales amounted to 4.1 million cubic meters, equivalent to a reduction of 25.5 percent. Operating EBITDA fell by 26.1 percent to CHF 328 million and internal operating EBITDA development amounted to –25.7 percent. However, cost savings partially offset the decline in volumes and prices. The weak market environment especially impacted the financial results of Holcim US. The operating EBITDA of Holcim Canada remained virtually unchanged. The strongest improvement was achieved by Aggregate Industries US. 7 Shareholders’ Letter North America July–Sept July–Sept ±% ±% 2009 2008 like-for-like Sales of cement in million t 3.3 4.5 –26.7 –26.7 Sales of aggregates in million t 14.4 16.8 –14.3 –14.3 Sales of ready-mix concrete in million m 3 1.8 2.3 –21.7 –26.1 Sales of asphalt in million t 2.3 2.7 –14.8 –14.8 Net sales in million CHF 1,181 1,516 –22.1 –20.3 Operating EBITDA in million CHF 243 245 –0.8 – Operating profit in million CHF 146 161 –9.3 –7.5 8 Third Quarter 2009 Latin America Jan–Sept Jan–Sept ±% ±% 2009 2008 like-for-like Sales of cement in million t 17.1 20.6 –17.0 –7.3 Sales of aggregates in million t 8.9 10.0 –11.0 –4.0 Sales of ready-mix concrete in million m 3 7.6 9.0 –15.6 –12.2 Net sales in million CHF 2,527 3,163 –20.1 –1.4 Operating EBITDA in million CHF 818 924 –11.5 +8.9 Operating profit in million CHF 672 752 –10.6 +9.8 Latin America July–Sept July–Sept ±% ±% 2009 2008 like-for-like Sales of cement in million t 5.9 6.9 –14.5 –4.3 Sales of aggregates in million t 3.0 3.4 –11.8 –2.9 Sales of ready-mix concrete in million m 3 2.7 3.0 –10.0 –6.7 Net sales in million CHF 853 1,110 –23.2 –1.6 Operating EBITDA in million CHF 275 317 –13.2 +13.2 Operating profit in million CHF 227 257 –11.7 +16.0 In Mexico, both private housebuilding and commercial and industrial construction remained weak. Holcim Apasco sold less cement and ready-mix concrete. However, government programs to stimulate residential and infrastructure construction strengthened demand in some parts of the country. Due to the delayed release of public funds for roadbuilding and a strong decline in private construction, Cemento de El Salvador saw a volume decline in all segments. Private construction activity in Costa Rica and Nicaragua was very weak, and the Group companies experienced declining sales volumes. Holcim Ecuador significantly increased its sales in all segments. Holcim Colombia sold less cement, but achieved higher sales volumes of aggregates and ready-mix concrete. In Brazil, Holcim focused on high-margin cement types, consciously accepting volume declines. The sales of aggregates suffered from various project delays and sometimes difficult weather conditions. Sales of ready-mix concrete slightly increased. For Cemento Polpaico in Chile, the recession and the market entry of a new competitor led to lower volumes in all segments. Minetti in Argentina sold less cement due to market conditions, but increased its sales of aggregates and ready-mix concrete. In July, Holcim US started the commissioning of the new Ste. Genevieve cement plant in the State of Missouri and produced its first clinker. The plant, which is also exemplary from an ecological standpoint, has an annual capacity of 4 million tonnes of cement and production will be gradually ramped up as construction work on the site comes to completion. Thanks to this new plant, containing integrated shipping and dispatch facilities on the Mississippi river, Holcim US will be able to supply customers on a new, cost-efficient basis. The Group company is ideally positioned to benefit more than most from an upswing in demand. Organic growth in Latin America Despite strong regional differences, Latin America’s economy remained very stable overall. However, Mexico and Central America have experienced a significant weakening of their economies due to their proximity to the US. This had a negative effect on the construction industry. In contrast, demand for building materials in Ecuador increased and remained at a solid level in Colombia and Argentina. As the first country of this Group region, Brazil returned to moderate economic growth in the middle of the year. In Chile, the wait-and-see investment attitude had a noticeable impact on cement consumption. [...]... comprehensive earnings2 Attributable to: Equity holders of Holcim Ltd Minority interest 1 2 Per third quarter interim report 2008: Net income (loss) recognized directly in equity Per third quarter interim report 2008: Total recognized net income (loss) Consolidated Financial Statements 15 Consolidated statement of financial position of Group Holcim Notes 30.9 .2009 31.12.2008 30.9.2008 Unaudited Audited Unaudited... America 2009 and tends to see an increase in sales in the second and third quarters reflecting the effect of the summer season This effect can be particularly pronounced in harsh winters 20 Third Quarter 2009 4 Segment information Information Europe North January–September (unaudited) Africa Asia Corporate/ Total America by region Latin America Middle East Pacific Eliminations Group 2009 2008 2009 2008 2009. .. capital The new Holcim shares were paid as On July 9, 2009, Holcim Ltd issued a CHF 1 billion bond with a a stock dividend at a ratio of 1:20 to the shareholders of Holcim coupon of 4 percent and a tenor of 4 years and 5 months The Ltd (note 13) proceeds were used to refinance existing debt and for general corporate purposes On July 8, 2009, the extraordinary shareholders’ meeting of Holcim Ltd resolved... projects during the reporting period purposes On September 11, 2009, Holcim Ltd issued a CHF 450 million 10 Bonds bond with a coupon of 4 percent and a tenor of 9 years On March 26, 2009, Holcim Finance (Luxembourg) S.A issued The proceeds were used to refinance existing debt and for a 5-year EUR 500 million bond with a coupon of 9 percent general corporate purposes guaranteed by Holcim Ltd The proceeds... by Holcim Ltd The proceeds of the two bonds were used to refinance existing On April 24, 2009, Holcim GB Finance Ltd issued an 8-year GBP debt and for general corporate purposes 300 million bond with a coupon of 8.75 percent guaranteed by Holcim Ltd The proceeds were used to refinance the GBP 200 million bond of Aggregate Industries Holdings Limited matur- 11 Share capital increase ing in July 2009. .. consolidated third quarter interim financial On January 23, 2008, Egyptian Cement Company was deconsoli- statements (hereafter interim financial statements”) are pre- dated and recognized as an investment in associate pared in accordance with IAS 34 Interim Financial Reporting The accounting policies used in the preparation and presenta- At December 31, 2008, Holcim Venezuela was deconsolidated tion of the interim. .. as at September 30, 2009 (unaudited) 1 Per third quarter interim report 2008: Total recognized net income (loss) 1,200 654 9,365 (452) 14,776 Consolidated Financial Statements 17 Available-for-sale Cash flow Currency Total Total equity Minority Total equity reserve hedging translation reserves attributable to interest shareholders’ reserve effects shareholders equity of Holcim Ltd 3 1 (1,824) 11,443... Financial Statements 21 Information Europe North July–September (unaudited) Africa Asia Corporate/ Total America by region Latin America Middle East Pacific Eliminations Group 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 Sales of cement 7.9 9.1 3.3 4.5 5.9 6.9 2.1 2.2 15.8 15.6 (1.0) (2.0) 34.0 36.3 Sales of mineral components 0.4 0.8 0.4 0.6 0.2 0.1 1.0 1.5 21.6 25.4 14.4 16.8 1.0... 22 Third Quarter 2009 5 Change in consolidated net sales Jan–Sept Jan–Sept July–Sept July–Sept 2009 2008 2009 2008 (2,000) 1,340 (612) 289 (134) (348) (82) 47 Currency translation effects (1,432) (1,938) (520) (714) Total (3,566) (946) (1,214) (378) Jan–Sept Jan–Sept July–Sept July–Sept Million CHF Volume and price Change in structure 6 Change in consolidated operating EBITDA Million CHF 2009 2008 2009. .. both Holcim Australia and Cement Australia enjoy in Australia, 14 Events after the reporting period including the good location and strategic importance of mineral On October 1, 2009, Holcim acquired 100 percent of the share reserves capital of Holcim Australia (formerly Cemex Australia), including its 25 percent interest in Cement Australia As a result of the acquisition of Holcim Australia, Holcim s . Strength. Performance. Passion. Third Quarter Interim Report 2009 Holcim Ltd Elbe Philharmonic Hall, Hamburg. © Herzog & de Meuron Architects Holcim Ltd Zürcherstrasse. holders of Holcim Ltd 1,465 0 62 768 Minority interest 360 (119) 9 94 1 Per third quarter interim report 2008: Net income (loss) recognized directly in equity. 2 Per third quarter interim report. position figures at closing rate. 2 Third Quarter 2009 Holcim quickly reacted to the difficult market environment with strict cost management Higher net income like-for-like in the third quarter despite lower