Lafarge Holcim (LHN) has missed Q3 expectations and reset its FY17 and FY18 targets sharply lower. While a reset from the new CEO was expected, the extent of the cut will surprise negatively. Not only has the FY18 (CHF7bn) target been reduced but having guided double-digit EBITDA growth LHN now expects growth of just 5-7% in 2017. Likewise, debt reduction targets have been cut. Jenisch has presented his initial views which aim to reduce complexity and focus on simplification, cost discipline and performance management. With difficult end-markets in Asia and Africa he clearly has his hands full. Separately, LHN announced that it is in talks with PPC regarding a possible transaction in Africa.